Meta's Potential Google TPU Adoption: Market Impact Analysis on GOOG, NVDA, and META

On November 24, 2025 (EST), a Reddit post highlighted Alphabet Inc.'s (GOOG) after-hours price surge to $327, linked to reports that Meta Platforms (META) is considering deploying Google’s Tensor Processing Units (TPUs) in its data centers [8]. This development was subsequently confirmed by mainstream financial outlets:

• Meta is in discussions to spend billions on Google’s TPUs starting in 2027 and rent TPU capacity from Google Cloud as early as next year [3].
• Google positions TPUs as a cheaper alternative to NVIDIA (NVDA) chips, targeting 10% of NVDA’s AI chip revenue [3].
• The Wall Street Journal noted Meta’s move could reduce its reliance on NVDA chips [7].

• GOOG
  : After-hours price increase of +1.62% to $323.64, with volume (50.58M) exceeding the 23.81M average—indicating strong buying interest [0].
• NVDA
  : After-hours decline of -2.59% to $177.82, with volume (309.77M) far above the 193.47M average—reflecting significant selling pressure [1].
• META
  : After-hours gain of +3.78% to $636.22, with volume (24.72M) above the 16.30M average—investors reacted positively to potential cost savings [2].

• AI Chip Market
  : A confirmed Meta-Google deal would mark a rare challenge to NVDA’s dominance in AI chips, as Meta is a major consumer of NVDA’s GPUs [6].
• Cost Efficiency
  : Meta’s adoption of cheaper TPUs could boost its EPS by reducing chip procurement costs, aligning with the Reddit argument about margin benefits [8].
• Cloud Competition
  : Google Cloud could gain a significant revenue stream from Meta’s TPU rental agreement, strengthening its position against AWS and Azure [5].

• Market Cap Comparison
  : NVDA ($4.33T) remains the largest company among the three, contradicting the Reddit claim that GOOG ($3.91T) would surpass it by year-end [1,0].
• Volume Trends
  : NVDA’s exceptionally high after-hours volume suggests institutional investors are re-evaluating their positions in response to the deal news [1].
• Price Movements
  : META’s 3.78% gain is the largest among the three, indicating investors prioritize cost-saving potential over the direct chip market shift [2].
• Valuation Metrics
  : GOOG’s P/E ratio (31.95) is lower than NVDA’s (44.01) and META’s (28.13), suggesting it may be undervalued relative to NVDA [0,1,2].

1. Deal Finalization
   : No official confirmation from Meta, Google, or NVDA regarding the agreement [3,7].
2. Deal Size
   : Exact financial terms (e.g., total value, number of chips) are undisclosed, though reports mention “billions” [3].
3. Demand Shift
   : Percentage of Meta’s current NVDA chip usage that would transition to Google TPUs is unknown [7].
4. Production Capacity
   : Google’s ability to scale TPU production to meet Meta’s demand has not been verified [5].

• Reddit Argument Validation
  : The FOMO argument (score10) aligns with GOOG’s above-average volume [0], while the “GOOG surpass NVDA” claim (score9) lacks factual basis [1,0].
• Cost-Saving Potential
  : Meta’s EPS boost from TPU adoption (score6) is plausible but depends on the scale of the deal and integration costs [8].

• NVDA Revenue Risk
  : Users should be aware that losing Meta as a customer could significantly impact NVDA’s long-term revenue growth, given Meta’s status as a top AI chip consumer [3,7].
• GOOG Execution Risk
  : This development raises concerns about Google’s ability to scale TPU production to meet Meta’s demand, which warrants careful consideration [5].
• META Integration Risk
  : Switching to TPUs may require costly infrastructure changes, potentially delaying the expected EPS benefits [8].

1. Official Announcements
   : Updates from Meta, Google, or NVDA regarding the deal status.
2. Earnings Calls
   : Meta’s next earnings call to assess management’s chip strategy and cost-saving plans.
3. TPU Capacity
   : Google’s public statements on TPU production scaling.
4. NVDA Response
   : Whether NVDA will adjust pricing or launch new chips to retain Meta’s business.
5. Market Sentiment
   : Ongoing volume and price trends for all three stocks in the coming days.

[0] Ginlix Analytical Database (get_stock_realtime_quote for GOOG)
[1] Ginlix Analytical Database (get_stock_realtime_quote for NVDA)
[2] Ginlix Analytical Database (get_stock_realtime_quote for META)
[3] Yahoo Finance: Meta in talks to spend billions on Google’s chips (URL: https://ca.finance.yahoo.com/news/meta-talks-spend-billions-googles-090619411.html)
[4] Yahoo Finance: Meta reportedly in talks to buy billions-worth of Google chips (URL: https://uk.finance.yahoo.com/news/meta-reportedly-talks-buy-billions-121008293.html)
[5] Yahoo Finance: Meta, Google discuss TPU deal as Google targets Nvidia’s lead (URL: https://uk.finance.yahoo.com/news/meta-google-discuss-tpu-deal-234007826.html)
[6] Yahoo Finance: Nvidia Slumps as Meta Considers Google’s AI Chips (URL: https://finance.yahoo.com/news/nvidia-slumps-meta-considers-googles-173851059.html)
[7] Wall Street Journal: Meta Is in Talks to Use Google’s Chips in Challenge to Nvidia (URL: https://www.wsj.com/tech/ai/meta-is-in-talks-to-use-googles-chips-in-challenge-to-nvidia-be390a51)
[8] Reddit Post: Google UP AH to $327: Meta mulls deploying Google TPU’s in its data centers (User Input, 2025-11-24)