Meta's Shift to Google TPUs Drives GOOG Stock Gains and NVDA Losses

Meta Platforms’ shift from NVIDIA GPUs to Google’s TPUs for AI workloads has immediate market impacts. On Nov24, GOOG closed at $318.47 (+2.4%) [0], with after-hours trading pushing it to $327 (+~2%) [user input]. NVDA closed at $182.55 (+1.7%) but fell ~2% after-hours [user input]. GOOG’s 6-month gain is ~84.63% [2], while NVDA’s 1-month performance is -12.20% [3]. The Technology sector was up 0.53% [7].

1. Market Share Shift
   : Google’s entry into the AI chip market (beyond its own cloud) challenges NVIDIA’s ~80% dominance [1].
2. Cost Implications
   : Meta’s adoption of TPUs could lead to significant cost savings, boosting its margins [1].
3. Stock Performance Trends
   : GOOG’s rally continues its positive trajectory, while NVDA faces headwinds from customer diversification [2,3].

• GOOG Opportunities
  : Expansion of TPU usage beyond Google Cloud could increase revenue streams [2].
• NVDA Risks
  : Losing Meta as a key customer may erode its revenue—Meta is estimated to be ~10% of NVDA’s revenue [3].
• Market Risks
  : The AI chip market is becoming more competitive, which could pressure pricing and margins for incumbents [1].

• GOOG
  : Nov24 close $318.47 (+2.4%), after-hours to $327, 6-month gain ~84.63%, market cap $3.86T [0,2].
• NVDA
  : Nov24 close $182.55 (+1.7%), after-hours down ~2%, 1-month loss -12.20%, market cap $4.30T [0,3].
• Meta
  : Shifting to TPUs for AI workloads, potential cost savings [1].
• Sector
  : Tech sector up 0.53% [7].