Analysis of Google's After-Hours Surge and Meta's TPU Consideration Impact on NVDA

On November 24, 2025, Google (GOOG) shares surged ~2% in after-hours trading to $327 after news broke that Meta (META) is evaluating Google’s Tensor Processing Units (TPUs) for its data centers [1]. This development poses a competitive threat to NVIDIA (NVDA), whose shares dropped ~2% in after-hours trading as Meta may reduce reliance on NVDA’s GPUs. Reddit discussions surrounding the event highlight mixed sentiments: some users note GOOG’s strong rally (~100% in 6 months per discussion) and potential FOMO buying, while others question the reliability of certain claims (e.g., GOOG surpassing NVDA by year-end) [1].

1. AI Chip Competition
   : Meta’s consideration of Google TPUs signals a potential shift in the AI chip market, where NVDA has dominated.
2. Cost Optimization
   : Meta adopting TPUs could lead to significant cost savings, boosting its EPS as per Reddit comments.
3. Market Sentiment
   : FOMO sentiment for GOOG shares is evident in the discussion, which may drive short-term price movements but raises valuation concerns.

• Risks
  :
  • NVDA faces market share erosion risk if Meta and other firms adopt alternative AI chips like Google’s TPUs.
  • GOOG may face overvaluation risk due to FOMO-driven buying without corresponding fundamental growth validation.
• Opportunities
  :
  • GOOG’s TPU business could see accelerated growth from enterprise adoption (like Meta).
  • Meta can optimize data center costs, improving profitability.

• GOOG after-hours price: $327 (up ~2%).
• NVDA after-hours change: down ~2%.
• Meta is in talks to deploy Google TPUs in data centers.
• Reddit discussion includes FOMO mentions, 6-month GOOG rally (~100% claim), and source reliability debates.