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

On November 24, 2025 (EST), reports emerged that Meta Platforms (META) is in discussions to use Google’s Tensor Processing Units (TPUs) in its data centers, reducing reliance on NVIDIA (NVDA) chips [WSJ, Tier1][1]. This news triggered an after-hours rally for Alphabet (GOOG) to $327 (+2%) and a decline in NVDA shares (-2.05%) [Reddit, Tier4][2]. The event follows Google’s earlier deal to supply 1 million TPUs to Anthropic [Bloomberg, Tier1][3].

• GOOG
  : Closed +2.40% on November 24 (to $318.47) [Daily Prices, Internal][4], with after-hours gains extending to $327. The next day (11/25), GOOG reached an all-time high of $328.67 before closing at $323.64 (-0.97% from prior close).
• NVDA
  : Closed +1.70% on November 24 (to $182.55) [Daily Prices, Internal][5], but initial after-hours declines reversed, with NVDA gaining +1.66% on November 25 (to $177.82).
• META
  : Closed +2.39% on November 24 (to $613.05) [Daily Prices, Internal][6], reflecting optimism about cost savings.

• GOOG
  : 6-month performance of +84.09% (driven by Gemini 3 reception and TPU adoption) [Company Overview, Internal][7].
• NVDA
  : 1-month performance of -5.86% (amid competition from custom chips) [Company Overview, Internal][8], though 6-month gains remain strong (+33.03%).
• Sector
  : Technology sector ranked 9th on November 24 (+0.149%) [Sector Performance, Internal][9], indicating mixed sentiment toward AI chip rivalry.

• GOOG
  : Market cap = $3.87T; Google Cloud revenue (12.4% of total) could benefit from TPU sales [Company Overview, Internal][7].
• NVDA
  : Market cap = $4.39T; Data Center revenue accounts for 88.3% of total (vulnerable to customer churn) [Company Overview, Internal][8].
• META
  : Potential cost savings from TPU adoption (Meta is in talks to spend billions on TPUs) [Bloomberg, Tier1][3].

• GOOG
  : 6-month gain = +84.09% [Company Overview, Internal][7]; 5-day gain = +7.89%.
• NVDA
  : 1-month loss = -5.86% [Company Overview, Internal][8]; 5-day change = -0.54%.

• Direct
  : GOOG (TPU supplier), NVDA (competitor), META (potential customer).
• Sectors
  : Semiconductors (NVDA), Internet Content (GOOG), Social Media (META).
• Supply Chain
  : Upstream (TPU component suppliers for Google), Downstream (Meta’s AI services).

• Exact size of Meta’s TPU order and deployment timeline [WSJ, Tier1][1].
• Quantifiable cost savings for Meta vs. NVIDIA GPU costs [Bloomberg, Tier1][3].
• Google’s TPU production capacity to meet Meta/Anthropic demand [Bloomberg, Tier1][3].

• GOOG
  : TPU adoption validates its AI chip tech, opening new revenue streams beyond search.
• NVDA
  : Custom chips pose long-term risk to its data center dominance (88.3% of revenue).
• META
  : Cost savings may be offset by switching costs (CUDA ecosystem vs. TPU architecture) [Yahoo Finance, Tier2][10].

• Confirmation of Meta-Google TPU deal (expected Q1 2026).
• NVIDIA’s response (new chips, pricing, CUDA enhancements).
• TPU adoption rate by other tech firms (Amazon, Microsoft).

• NVDA
  : Users should note that competition from custom AI chips could erode its market share over time [Yahoo Finance, Tier2][10].
• GOOG
  : Scaling TPU production to meet demand is critical; failure to deliver could reverse gains [Bloomberg, Tier1][3].
• META
  : Integration challenges between TPUs and existing infrastructure may delay cost savings [WSJ, Tier1][1].

Note: Reference [2] is user-generated content and should be verified with official sources. This analysis is for informational purposes only and does not constitute investment advice. Risk Warning: Competition from custom AI chips may impact NVDA’s long-term market dominance; users should monitor Meta’s TPU deal confirmation closely. Disclaimer: All data is as of November 27, 2025, and subject to change. Always conduct independent research before making decisions.