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

The event centers on Meta Platforms’ (META) advanced discussions to deploy Google’s Tensor Processing Units (TPUs) in its data centers, first reported on Reddit [2] and confirmed by major financial outlets [1]. This move triggered immediate after-hours market reactions: Alphabet (GOOG) shares rose ~2% to $327, NVIDIA (NVDA) fell ~2.05%, and META gained ~2% [0]. For GOOG, this validates its TPU strategy, positioning it as a credible competitor to NVDA in the AI chip market [1]. GOOG has already rallied 29.91% from September to November 2025, driven by positive reception of its Gemini 3 AI model [0]. For NVDA, the potential loss of Meta as a customer represents a significant revenue risk, given Meta’s massive AI infrastructure spending [1]. For META, switching to Google’s TPUs could lead to substantial cost savings and an EPS boost, as highlighted in the Reddit discussion [2].

1. Cross-domain shift
   : Meta’s consideration of Google’s TPUs signals a broader trend of cloud providers expanding into AI chip manufacturing to compete with specialized players like NVDA [1].
2. Competitive dynamics
   : GOOG’s emergence as an AI chip provider to major tech companies (like Meta) could erode NVDA’s dominant market share in AI chips over time [0].
3. Cost-benefit tradeoff
   : META’s move prioritizes cost efficiency over existing NVIDIA GPU infrastructure, indicating that price sensitivity is becoming a key factor in AI chip selection [2].

• GOOG
  : Opportunity to gain market share in AI chips but faces execution risk in scaling TPU production to meet Meta’s demand [1].
• NVDA
  : Risk of losing a major customer (Meta) but has the opportunity to respond with price adjustments or new product launches to retain market share [0].
• META
  : Opportunity for cost savings and EPS growth but faces integration risks with Google’s TPUs, which may disrupt its existing AI services [2].
• Market Sentiment
  : Reddit discussions indicate FOMO among investors for GOOG shares, which could lead to short-term overvaluation if the deal does not materialize as expected [2].

The event occurred on November 24,2025 (EST). Key data points: GOOG’s 29.91% gain from September to November, NVDA’s 2.08% recent drop, META’s 2.26% gain [0]. Market caps: GOOG ($3.86T), NVDA ($4.30T), META ($1.63T) [0]. Information gaps include the exact terms of the Meta-Google deal (total value, timeline), NVDA’s long-term market share impact, and whether other companies will follow Meta’s lead [1].