Meta's Consideration of Google TPUs: Market Impact on GOOG, NVDA, and META

On November 24, 2025, reports emerged that Meta Platforms (META) is in advanced discussions to deploy Google’s Tensor Processing Units (TPUs) in its data centers, potentially reducing reliance on Nvidia’s (NVDA) GPUs [1][3]. This development triggered significant market moves: Alphabet (GOOG) rose 2.43% to $326.21, NVDA fell6.68% to $170.36, and META gained 2.09% to $625.89 [0]. Sector-wise, Communication Services (including GOOG and META) increased by0.32%, while the Technology sector dipped slightly (-0.088%) [0]. Key metrics include market caps: GOOG ($3.94T), NVDA ($4.15T), META ($1.58T) [0].

1. Google’s TPU push marks a strategic challenge to Nvidia’s dominance in the AI chip market [1].
2. Meta’s potential switch to TPUs could yield cost savings but carries technical integration risks [3].
3. Google Cloud may benefit from Meta’s planned TPU rental agreement starting in2026 [1].
4. Broadcom (AVGO), a TPU component supplier for Google, stands to gain from increased production demand [1].

• GOOG
  : Opportunity to expand AI chip market share; Risk: Scaling TPU production to meet Meta’s demand [1].
• NVDA
  : Risk of revenue decline from losing Meta (a major customer); Need to monitor if other large clients explore alternatives [1].
• META
  : Opportunity for cost savings; Risk: Short-term disruptions to AI model development due to hardware transition [3].
• AVGO
  : Opportunity to increase sales as Google scales TPU production [1].

• Price Changes
  : GOOG (+2.43%), NVDA (-6.68%), META (+2.09%) [0].
• Timeline
  : Meta plans to rent TPUs from Google Cloud in 2026 and deploy in-house units by2027 [1].
• Affected Players
  : GOOG, NVDA, META, AVGO (TPU component supplier) [1].
• Market Caps
  : GOOG ($3.94T), NVDA ($4.15T), META ($1.58T) [0].