GOOG After-Hours Rally: Meta Mulls Google TPUs, Impact on NVDA

GOOG’s after-hours surge to $327 is driven by Meta’s talks to adopt Google’s TPUs [0]. This move positions GOOG as a viable AI chip rival to NVDA, though analysts frame it as a cost hedge rather than full replacement [1]. GOOG’s 52% rally since mid-September is fueled by Gemini 3’s positive reception [0]. NVDA’s ~2.05% AH drop reflects investor concerns, but switching costs from NVDA’s CUDA ecosystem limit near-term impact [1].

1. AI Chip Competition
   : GOOG’s TPU adoption by Meta signals growing competition in the AI chip space, challenging NVDA’s dominance over time.
2. GOOG Momentum
   : Gemini 3’s success and expanding TPU ecosystem reinforce GOOG’s upward trajectory.
3. NVDA Resilience
   : CUDA dependency and supply constraints keep NVDA’s position strong, despite emerging rivals.

• Risks
  : NVDA faces potential market share erosion; Meta risks switching costs from CUDA.
• Opportunities
  : GOOG gains TPU revenue and ecosystem expansion; Meta may achieve significant cost savings.

• GOOG: ~52% rally since mid-September, AH rise to $327 (~2% gain).
• NVDA: ~2.05% AH drop amid Meta’s TPU consideration.
• Meta: Potential cost savings from TPU adoption, offset by switching cost risks.