Meta's Consideration of Google TPUs: Impact on GOOG, META, and NVDA

On November24,2025 (EST), reports emerged that Meta Platforms (META) is in talks to deploy Google’s Tensor Processing Units (TPUs) in its data centers, potentially reducing reliance on NVIDIA (NVDA) GPUs. This news was first highlighted in a Reddit discussion (Tier4 source) [1] and subsequently verified by mainstream financial outlets including Yahoo Finance and The Wall Street Journal [2]. The Reddit post noted Alphabet Inc. (GOOG) shares rose ~2% in after-hours trading to $327, while NVDA shares fell ~2.05% AH [1]. Verified sources confirm Meta is considering the switch as early as2027, with potential deal value in the billions [2].

• GOOG
  : The stock saw after-hours gains following the news but experienced a slight pullback in subsequent trading, closing at $320.28 (-1.04% from previous close) as of November26 [0].
• NVDA
  : Initial after-hours declines reversed, with the stock closing at $180.26 (+1.37%) on November26, indicating market resilience to the potential competitive threat [0].
• META
  : Shares closed slightly lower at $633.61 (-0.41%) on November26, reflecting mixed sentiment on the long-term cost-saving benefits [0].

• GOOG
  : A Meta deal could create a significant new revenue stream for Google’s cloud and AI chip division, supporting continued growth [2].
• NVDA
  : While Meta’s potential switch poses a competitive risk, NVDA retains a dominant market share in AI chips (current market cap of $4.39T vs GOOG’s $3.87T) [0].
• Sector
  : The Technology sector rose0.149% and Communication Services (including GOOG/META) rose0.266% on November24, aligning with positive sentiment around AI infrastructure developments [0].

1. GOOG Performance
   : The stock has rallied 85.91% from May27 to November24 (period open $171.30 → close $318.47), driven by AI advancements (e.g., Gemini3) and cloud growth [0]. This is slightly below the Reddit claim of “nearly100% in6 months”.
2. Market Cap Comparison
   : NVDA remains the largest company ($4.39T) vs GOOG ($3.87T) as of November26, making the Reddit claim of GOOG surpassing NVDA by year-end unlikely [0].
3. Volatility
   : GOOG’s daily volatility over the6-month period was 1.76%, indicating moderate price swings amid its rally [0].

• Deal Timeline
  : When will Meta finalize its decision on TPU adoption? (Expected by 2027 per [2], but no firm date)
• Deal Size
  : What is the potential revenue impact for GOOG and cost savings for META? (WSJ mentions “billions” but no specific figures [2])
• Competitive Response
  : How will NVDA react to retain Meta’s business (e.g., price cuts, new product launches)?

• Bullish Case for GOOG
  : AI chip adoption by Meta could validate Google’s TPU ecosystem and attract other clients.
• Bearish Case for NVDA
  : Loss of Meta’s business could dent growth, but NVDA’s broad customer base (cloud providers, enterprises) mitigates this risk.
• Neutral Case for META
  : Cost savings from TPU adoption may boost EPS, but transition costs and integration risks need consideration.

• FOMO Risk
  : The Reddit post mentions users experiencing FOMO to buy GOOG shares. Users should be aware that impulsive decisions based on social media sentiment can lead to suboptimal outcomes [1].
• Unconfirmed Deal
  : The Meta-Google talks are not finalized. This development raises concerns about over-reliance on speculative news that may not materialize [2].
• Competitive Pressure
  : For NVDA, continued loss of large clients to alternative AI chips could impact long-term market share [0].

1. Official Announcements
   : Meta’s formal decision on TPU deployment.
2. Financial Impact
   : Any guidance updates from GOOG/NVDA/META regarding the potential deal.
3. Market Share Shifts
   : Changes in AI chip market share data (e.g., from IDC or Gartner) post-decision.

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