Meta Mulls Google TPU Adoption: Impact on GOOG, NVDA, and META Market Dynamics

On

, a Reddit discussion highlighted key market developments:

• Alphabet Inc. (GOOG) rose ~2% in after-hours trading to $327 following reports Meta Platforms (META) is considering Google’s Tensor Processing Units (TPUs) for its data centers.
• User arguments included GOOG’s 100% 6-month rally, concerns about report reliability, and FOMO to buy GOOG shares.

Verified news sources confirmed:

• Meta is in talks to adopt Google’s TPUs starting in
  2027
  , diversifying from NVIDIA (NVDA) GPUs [1][2].
• Broadcom (AVGO) designs TPUs for Google, so Meta’s adoption would benefit AVGO [2].
• NVDA issued a rare statement to reassure investors, emphasizing its “generation ahead” GPU platform [3].

• GOOG
  : After-hours gain of ~2% (event day) → Real-time price (11/28): $319.86 (-0.13% intraday) [0][Reddit].
• NVDA
  : After-hours drop of ~2.05% → Real-time price (11/28): $176.60 (-2.03% intraday) [0][Reddit].
• META
  : Real-time price (11/28): $647.69 (+2.22% intraday), aligning with cost-savings arguments [0].

• GOOG
  : Surge of
  29.91%
  (mid-Sept to Nov24: $245.14 → $318.47) driven by Gemini3 and TPU adoption news [0].
• NVDA
  : Modest +3.92% gain over the same period, underperforming GOOG [0].
• Sector
  : Technology up +0.56% (11/24), Communication Services (GOOG/META) up +0.81% [0].

Metric	GOOG	NVDA	META
Market Cap	$3.86T	$4.30T	$1.63T
P/E Ratio (TTM)	31.61	43.71	28.63
Period Change (9/15-11/24)	+29.91%	+3.92%	N/A
Intraday Change (11/28)	-0.13%	-2.03%	+2.22%

Key Observations:

• Valuation
  : GOOG’s lower P/E ratio suggests it is more attractively valued than NVDA post-rally [0].
• Market Cap
  : NVDA ($4.30T) still leads GOOG ($3.86T), so Reddit’s “GOOG surpassing NVDA by year-end” claim is unsubstantiated [0].
• Meta’s Gain
  : META’s rise supports cost-savings arguments from TPU adoption [0].

Further investigation needed:

1. Meta’s TPU Budget
   : Exact investment amount and portion of AI spending.
2. NVDA’s Meta Revenue
   : What percentage of NVDA’s revenue comes from Meta?
3. TPU Production
   : Can Google scale to meet Meta’s demand?
4. Adoption Timeline
   : Are there earlier pilot programs before 2027? [1][2]

• Diversification Risk
  : Meta’s TPU talks could reduce NVDA’s revenue. Users should monitor this trend [3][4].

• Execution Risk
  : Scaling TPU production may be challenging. This raises concerns about Google’s ability to deliver on expansion plans [4].

• FOMO Risk
  : Reddit users mentioned FOMO to buy GOOG. Historical patterns show hype-driven purchases often lead to suboptimal outcomes [Reddit].

Key Factors to Monitor:

• Meta’s official TPU announcement,
• NVDA’s quarterly earnings (Meta revenue impact),
• Google’s TPU production updates,
• Competitor responses (e.g., NVDA’s next-gen GPUs).

[0] Ginlix Analytical Database
[1] Korea Herald: Google’s AI chip push spurs hope for Samsung, SK hynix → https://www.koreaherald.com/article/10625943
[2] Ynet News: Google’s Gemini3 challenges Nvidia’s AI chip dominance → https://www.ynetnews.com/tech-and-digital/article/bj7q1nr11zx
[3] InvestorsObserver: Nvidia panics? Rare statement triggers selloff → https://investorsobserver.com/stocks/nvidia-panics-rare-statement-triggers-selloff-as-meta-turns-to-googles-tpus/
[4] Yahoo Finance: Meta Throws Billions at Google AI Chips → https://finance.yahoo.com/news/meta-throws-billions-google-ai-143323406.html
[5] Times of India: Nvidia responds to losing $250B to Google deal → https://timesofindia.indiatimes.com/technology/tech-news/nvidia-publicly-responds-to-losing-250-billion-to-google-deal-declares-we-are/articleshow/125580817.cms
[Reddit] Reddit discussion on GOOG (2025-11-24 EST) → Tier3 source (use with caution).

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