Meta’s Potential Adoption of Google TPUs: Market Impact on GOOG, NVDA, and META

On November 24, 2025, reports emerged that Meta Platforms (META) is in advanced talks to deploy Google’s Tensor Processing Units (TPUs) in its data centers, challenging NVIDIA’s (NVDA) dominance in AI chips [0]. This news triggered immediate after-hours (AH) movements: GOOG rose ~2% to $327, while NVDA fell ~2.05% [0]. By Nov 28, GOOG traded at $319.91 (slight pullback from AH highs), NVDA at $176.51 (further decline), and META at $647.02 (up 2.12% as investors priced in potential cost savings from reduced NVDA reliance) [2].

GOOG’s 6-month rally (May 27–Nov 24, 2025) reached +85.91% ($171.30 → $318.47), driven by AI chip momentum and positive reception of its Gemini 3 model [2]. Bloomberg corroborated Meta’s potential multi-billion-dollar investment in Google’s TPUs [1].

1. AI Chip Competition
   : Google’s TPUs are emerging as a credible alternative to NVDA’s GPUs, signaling a shift in the AI hardware landscape.
2. Cost Efficiency
   : META’s adoption of TPUs could reduce long-term AI infrastructure costs, enhancing profitability.
3. GOOG’s AI Momentum
   : The 6-month rally reflects growing investor confidence in Google’s AI ecosystem beyond its core search business.

• Risks
  :
  • NVDA
    : Investors should be aware of potential market share loss if Meta switches to Google’s TPUs [1].
  • GOOG
    : Execution risk in scaling TPU production to meet Meta’s demand could strain supply chains.
  • META
    : Integration challenges with new chip architecture may delay cost-saving benefits.
• Opportunities
  :
  • GOOG
    : Expansion of its AI chip business to enterprise clients like Meta opens new revenue streams.
  • META
    : Long-term cost efficiency and improved AI performance could boost margins.

• GOOG’s 6-month return (May-Nov 2025): +85.91%.
• Nov 24 AH movements: GOOG up ~2% ($327), NVDA down ~2.05%.
• Nov28 closing prices: GOOG ($319.91), NVDA ($176.51), META ($647.02).
• Meta’s potential TPU adoption represents a significant competitive threat to NVDA’s AI chip dominance.

: This analysis is for informational purposes only and does not constitute investment advice. Always conduct thorough research before making financial decisions.