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

On November 24, 2025 (EST), a Reddit post ([2]) reported Alphabet Inc. (GOOG) shares rose ~2% in after-hours trading to $327 following rumors that Meta Platforms (META) is considering deploying Google’s Tensor Processing Units (TPUs) in its data centers. This was later verified by Outlook Business ([1]), which confirmed Meta is in advanced talks to spend billions on Google TPUs—with potential rental agreements via Google Cloud starting in 2026 and full on-premise deployment by 2027. The shift would reduce Meta’s historical reliance on NVIDIA (NVDA) GPUs for AI workloads.

• After-Hours Reactions
  : GOOG up ~2% to $327, NVDA down ~2% (per Reddit post [2]).
• Current Price Movements
  : As of November 26, 2025 ([0]):
  • GOOG: $319.29 (-1.34% from previous close)
  • NVDA: $180.13 (+1.30% from previous close)
  • META: $634.36 (-0.29% from previous close)

• GOOG
  : +29.91% gain from September 15 to November 24, 2025 ([0]), driven by Gemini 3 reception and TPU deal rumors.
• NVDA
  : +6.00% growth over 60 days (Sept 4–Nov 26) ([0]), indicating moderate resilience despite competitive pressures.
• Sector Sentiment
  : Technology sector up 0.3484% on November 26 ([0]), aligning with positive AI infrastructure sentiment.

From internal data ([0]):

• Market Caps
  : GOOG ($3.85T), NVDA ($4.39T), META ($1.60T) → NVDA remains larger than GOOG, contradicting the Reddit claim of GOOG surpassing NVDA by year-end.
• Price Trends
  :
  • GOOG: 20-day moving average (MA) ($285.84) < current price → bullish momentum.
  • NVDA: 20-day MA ($190.03) > current price → short-term bearishness.
• Volume
  : GOOG’s average daily volume (23.12M) < NVDA’s (191.65M) → NVDA has higher liquidity.
• Profitability
  : GOOG’s P/E ratio (31.52) < NVDA’s (44.59) → GOOG is relatively undervalued.

1. Exact size of Meta’s potential TPU deal (billions but no specific figure).
2. Meta’s current annual GPU procurement spend from NVDA to assess impact of the shift.
3. Google’s TPU production capacity to meet Meta’s demand.
4. Timeline of Meta’s TPU deployment (2026 rental vs.2027 on-premise) and phase-out of NVDA GPUs.

• GOOG
  : Strategic shift from cloud-only to on-premise TPUs expands its AI hardware market share.
• Meta
  : Offers cost savings and supply diversification away from NVDA, potentially boosting EPS ([1][2]).
• NVDA
  : Faces competitive threats but retains strong ecosystem advantages (software stack, installed base) ([1]).

Decision-makers should balance GOOG’s upside potential with NVDA’s long-term competitive risks.

• Execution Risk
  : The Meta-Google deal is still in talks; delays/cancellations could impact GOOG’s growth ([1]).
• Competitive Response
  : NVDA may cut prices or enhance support to retain Meta, squeezing margins ([1]).
• Integration Challenges
  : Meta may face software compatibility issues when shifting from NVDA GPUs to Google TPUs ([1]).

1. Official announcements from Meta/Google confirming the TPU deal.
2. NVDA’s customer retention strategies and quarterly earnings reports.
3. Adoption of TPUs by other hyperscalers (Amazon, Microsoft) to gauge broader competitive threats to NVDA.
4. Google’s TPU production updates to ensure it can meet demand.