Meta's Potential Google TPU Adoption: Impact on GOOG, NVDA, and AI Chip Market Dynamics

The event centers on Meta Platforms’ (META) ongoing talks to deploy Google’s (GOOG) Tensor Processing Units (TPUs) in its data centers, challenging NVIDIA’s (NVDA) AI chip dominance [4][6]. GOOG shares rose ~2% in after-hours trading to $327 [7], while NVDA fell ~2.05% AH [3]. Internal data shows GOOG rallied 29.91% since mid-September (outperforming NVDA’s 3.92% gain) [1]. Meta’s switch could boost its EPS via cost savings [4][9].

Cross-domain trends: Tech companies diversify AI chip suppliers to reduce costs [6]. GOOG’s conservative valuation (P/E=31.62) vs NVDA’s 44.62 suggests lower overvaluation risk [0][3]. The multi-billion dollar deal could add significant revenue to Google’s cloud segment [5][6].

• Risks
  : NVDA faces revenue loss if Meta switches chips [6]. GOOG risks overvaluation from FOMO if the deal fails [7][9]. Meta faces execution risks in transitioning to TPUs.
• Opportunities
  : GOOG gains TPU revenue [5]. Meta reduces costs [4]. NVDA may innovate to retain market share [6].

Critical data: GOOG’s 29.91% rally (mid-Sept to Nov 24); NVDA’s 3.92% gain; GOOG’s $3.87T market cap vs NVDA’s $4.39T; P/E ratios (31.62 vs44.62); potential multi-billion dollar deal size [1][5][6].