Meta's Potential Google TPU Deal: Market Impact on GOOG, NVDA, META

On November24,2025, a Reddit post [5] highlighted Alphabet (GOOG) rising in after-hours (AH) trading following reports Meta (META) is considering Google’s Tensor Processing Units (TPUs). Subsequent news confirmed multi-billion dollar deal talks starting in2027 [1][3]. Market reactions included GOOG up1.62% AH ($323.64) with 2.09x average volume [0], META up3.78% AH ($636.22) [0], and NVDA down2.59% AH ($177.82) [0]. Google’s TPUs are positioned as a cheaper alternative to NVIDIA’s GPUs [2], challenging NVIDIA’s80%+ AI chip market share [3]. Meta’s potential shift could reduce reliance on NVIDIA and lower data center costs [1].

1. Google’s expansion of TPUs beyond internal use marks a strategic entry into the external AI chip market, competing directly with NVIDIA [3].
2. Meta’s cost-saving opportunity from TPUs aligns with its focus on operational efficiency [2].
3. NVIDIA’s higher P/E ratio (44.01 vs GOOG’s31.95) makes it more sensitive to competitive threats [0].
4. Reddit discussions mention investor FOMO, indicating potential short-term market volatility [5].

• GOOG
  : Opportunity to gain AI chip market share, but risks in scaling TPU production to meet Meta’s demand [4].
• NVDA
  : Competitive threat from Google’s TPUs could impact long-term growth; investors should monitor customer retention [2].
• META
  : Cost-saving opportunity via TPUs, but integration risks with existing data center infrastructure [4].
• Market
  : FOMO-driven trading poses risks of impulsive decisions; investors should prioritize verified information [5].

• AH Price Changes: GOOG (+1.62%), NVDA (-2.59%), META (+3.78%) [0].
• Market Caps: NVDA ($4.33T) > GOOG ($3.91T) > META ($1.60T) [0].
• Volume: All stocks saw elevated trading (GOOG:2.09x avg, NVDA:1.34x avg, META:1.52x avg) [0].
• P/E Ratios: GOOG (31.95), NVDA (44.01), META (28.13) [0].