Meta's Potential Google TPU Adoption: Market Impact on GOOG, NVDA, and META

On November 24, 2025 (EST), Alphabet Inc. (GOOG) shares rose ~2% in after-hours trading to $327 following reports that Meta Platforms (META) is in talks to deploy Google’s AI chips (TPUs) in its data centers, competing with NVIDIA (NVDA) [User-provided Reddit post]. GOOG has rallied ~85% over 6 months, while NVDA’s shares fell ~2.05% in after-hours [0]. Meta’s potential switch is driven by Google’s TPU cost advantage—2x cheaper per rack than NVDA’s GPUs—which could lead to significant EPS savings for Meta [3].

1. Cross-Domain Impact
   : Google’s TPU adoption by Meta threatens NVDA’s dominance in the AI chip market, given NVDA’s 88.3% revenue reliance on data centers [0].
2. Market Cap Trend
   : GOOG’s market cap ($3.86T) is approaching NVDA’s ($4.30T) due to its rapid rally, though it hasn’t surpassed NVDA yet [0].
3. FOMO Alignment
   : Reddit users’ FOMO into GOOG aligns with its overbought condition (RSI=73.73), signaling potential short-term pullback [2].

• Risks
  :
  • GOOG: Overbought RSI (73.73) indicates short-term reversal risk [2].
  • NVDA: High data center revenue dependence (88.3%) and client churn risk from Meta’s potential switch [1].
• Opportunities
  :
  • META: Cost savings from TPUs could boost its EPS [3].
  • GOOG: Expansion of its AI chip market share beyond its own ecosystem.

• GOOG
  : Market cap $3.86T, P/E ratio 31.14x, ROE 35% [0].
• NVDA
  : Market cap $4.30T, P/E ratio43.29x, ROE1.04% [0].
• Meta’s Impact
  : Potential TPU order could represent up to10% of NVDA’s annual revenue [3].

Note: This report is for informational purposes only and does not constitute investment advice.