Analysis of GOOG After-Hours Rally & Meta's Potential TPU Adoption Impact

This analysis is based on a Reddit post [1] reporting Meta Platforms is in talks to use Google’s TPUs in data centers, leading to GOOG’s ~2% after-hours rise and NVDA’s ~2% drop. Current data [0] shows GOOG at $320.28 (slight pullback from AH $327), NVDA at $180.26 (+1.37% recovery), and market caps: GOOG $3.87T vs NVDA $4.39T (NVDA remains larger). Google’s Project Suncatcher (TPUs in space data centers by 2027) [0] is a long-term growth driver.

1. Google’s TPU gaining traction against NVDA’s GPU dominance: Meta’s potential adoption signals competitive threat to NVDA’s AI chip market share.
2. Cost optimization for Meta: TPU adoption could boost EPS via reduced NVDA GPU costs.
3. GOOG’s long-term play: Project Suncatcher expands TPU use cases beyond terrestrial data centers.

• Risks
  : NVDA’s significant overvaluation (DCF intrinsic value $62 vs current $180 [0]), GOOG’s Antigravity AI tool security vulnerabilities [0].
• Opportunities
  : GOOG’s TPU revenue growth from Meta adoption, Meta’s EPS improvement from cost savings, MediaTek’s benefit from Google’s AI progress [0].

• GOOG: ~52% rally since mid-Sept, current price $320.28, market cap $3.87T.
• NVDA: Current price $180.26, market cap $4.39T, DCF intrinsic value $62.
• Meta: Upcoming earnings (Nov 28) and potential cost savings from TPU adoption.
• Sector: Tech up 0.15% [0].