GOOG After-Hours Rally on Meta TPU Talks: Competitive Dynamics & Market Impact

Alphabet Inc. (GOOG) saw after-hours gains (~2% per Reddit reports) on November 24, 2025, following news Meta Platforms (META) is in advanced talks to deploy Google’s Tensor Processing Units (TPUs) starting 2027 [1][3]. This marks Google’s entry into the third-party AI chip market, historically exclusive to its own infrastructure [1]. GOOG closed at $318.47 on Nov24 (up 2.4% intraday) and has rallied 29.9% over two months (Sept15-Nov24) [0]. NVIDIA (NVDA) shares fell ~2.6% on Nov25 due to competitive concerns [2], though its market cap ($4.39T as of Nov27) remains higher than GOOG ($3.87T), making the Reddit claim of GOOG surpassing NVDA by year-end unlikely [0]. Meta’s potential TPU adoption could yield long-term cost savings, but no immediate EPS impact data is available [3].

1. Google’s Strategic Shift
   : Entering third-party AI chip sales opens a new revenue stream for GOOG, strengthening its AI ecosystem [1].
2. NVDA’s Competitive Moat
   : Despite competition, NVDA retains leadership via its CUDA software stack and broad customer base, per Wedbush analyst Dan Ives [1].
3. Meta’s Long-Term Benefits
   : TPU adoption could reduce Meta’s reliance on NVDA chips, but the 2027 timeline delays financial gains [1].

• FOMO Risk
  : Reddit users mention FOMO to buy GOOG, but the stock’s rally already prices in significant AI growth expectations [3].
• Deal Execution
  : Meta-Google talks are ongoing; failure to finalize terms would reverse GOOG’s positive sentiment [2].
• Competition for NVDA
  : Google’s TPUs pose a long-term threat to NVDA’s data center chip dominance [1].

• GOOG’s New Revenue
  : Third-party TPU sales could drive future growth for GOOG [1].
• Meta’s Cost Savings
  : Long-term adoption of TPUs may lower Meta’s operational costs [3].

• GOOG’s 2-month rally (Sept15-Nov24): +29.9% [0]
• NVDA’s market cap (Nov27): $4.39T vs GOOG’s $3.87T [0]
• NVDA’s Nov25 price drop: ~2.6% [2]
• Meta’s TPU adoption timeline: Potential start in 2027 [1]