Meta's Consideration of Google TPUs: Market Impact on GOOG, NVDA, and META

Meta Platforms’ discussions to use Google’s Tensor Processing Units (TPUs) in its data centers (The Wall Street Journal [2]) have notable market effects. GOOG initially rose ~2% in after-hours (Nov24) before stabilizing at $320.12 (-0.05% as of Nov28) [0], supported by its ~52% rally since mid-September (Gemini3’s success [6]) and TPU expansion [2]. NVDA dropped ~2.08% in after-hours (Nov28) [1], following a 7.81% Nov20 drop amid speculation [5], reflecting concerns over losing Meta as a GPU customer. META gained 2.26% in after-hours (Nov28) [1], aligned with cost-saving expectations from TPUs [4].

1. AI Chip Competition
   : Google’s TPUs emerge as a viable NVDA alternative, potentially shifting AI capex [1].
2. Multi-Vendor Trend
   : Meta’s TPU consideration highlights demand for diverse AI solutions [2].
3. Market Cap Gap
   : NVDA’s $4.30T cap [1] still exceeds GOOG’s $3.86T [0], making short-term overtaking unlikely [4].

• NVDA
  : Risk of losing Meta’s GPU orders; monitor customer retention [1].
• GOOG
  : Opportunity in enterprise TPU sales, but deal uncertainty exists [2].
• META
  : Cost-saving potential, but integration risks remain [1].

GOOG’s rally reflects AI advancements and TPU expansion [6], while NVDA faces competitive pressure [2]. META’s TPU talks align with cost optimization [4].