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

On November 24, 2025 (EST), Alphabet Inc. (GOOG) shares rose ~2% in after-hours trading following reports that Meta Platforms (META) is in talks to use Google’s AI chips (TPUs) in its data centers [9]. NVIDIA (NVDA) shares fell ~2.05% in after-hours trading on the news, but both initial reactions reversed the next trading day (November 26):

• GOOG closed at $320.28 (-1.04% [0])
• NVDA closed at $180.26 (+1.37% [2])
• META closed at $633.61 (-0.41% [1])

The Technology sector, home to all three companies, saw a modest gain of 0.14949% on November 26 [8], indicating no broad sector disruption from the unconfirmed talks. Affected instruments include direct stocks (GOOG, META, NVDA) and related sectors (AI chipmakers, cloud services, data center infrastructure).

1. Reversed Market Reaction
   : The short-lived after-hours moves suggest investors do not view Meta’s TPU talks as an immediate threat to NVDA’s dominant AI chip position.
2. Discrepancy in Rally Figures
   : GOOG shares rose 29.91% from September 15 to November 24 [3], conflicting with Reddit’s claim of a ~52% rally since mid-September (likely an error or different timeframe).
3. Investor Interest vs. FOMO
   : GOOG’s trading volume on November 26 (29.73M) exceeded its 24.25M average [0], indicating increased investor interest but not sustained FOMO as mentioned in the Reddit post.
4. Market Cap Reality
   : NVDA’s market cap ($4.39T [2]) remains higher than GOOG’s ($3.87T [0]), debunking Reddit’s low-scoring claim that GOOG will surpass NVDA as the largest company by year-end.

• GOOG
  : Opportunity to expand TPU demand via Meta, but risk of reversed gains if the deal falls through. Overreliance on large customers like Meta (if finalized) may expose GOOG to revenue volatility.
• NVDA
  : Risk of customer loss (Meta) if talks succeed, though current market cap dominance suggests limited immediate impact.
• META
  : Opportunity for cost savings via TPU adoption, but risk of technical integration challenges and unexpected costs that could offset projected savings.

• GOOG Performance
  : 29.91% rise from September 15 to November 24 [3] (from $245.14 to $318.47).
• Market Caps
  : As of November 26: GOOG ($3.87T [0]), NVDA ($4.39T [2]), META ($1.60T [1]).
• Key Monitoring Points
  : Official announcements from Meta/Google, NVDA’s response (price adjustments, new products), and Meta’s quarterly earnings updates on cost structure and AI infrastructure spending.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice.