GOOG After-Hours Surge Analysis: Meta Mulls Google TPU Deployment Impact

Alphabet Inc. (GOOG) experienced a ~2% after-hours surge to $327 on November 24, 2025, driven by unconfirmed reports that Meta Platforms (META) is in talks to deploy Google’s Tensor Processing Units (TPUs) in its data centers [1]. This development positions Google as a direct competitor to NVIDIA (NVDA) in the AI chip market, a segment where NVDA currently holds significant dominance [0].

GOOG has rallied ~52% since mid-September, fueled by positive reception of its Gemini 3 AI model [0]. Conversely, NVDA shares fell ~2.05% in after-hours trading, reflecting investor concerns over potential market share loss [0]. META’s potential adoption of TPUs could lead to substantial cost savings, as indicated by user discussions highlighting EPS benefits from reduced GPU procurement costs [1].

• AI Chip Competition
  : Google’s TPUs are emerging as a viable alternative to NVDA’s GPUs, signaling increased competition in the AI infrastructure space [0].
• Revenue Diversification
  : For GOOG, expanding TPU sales beyond internal use diversifies its revenue streams, reducing reliance on advertising [0].
• Cost Optimization
  : META’s consideration of TPUs underscores the growing focus on cost efficiency in AI infrastructure, a trend that may reshape supplier dynamics [1].

• Risks
  :
  • Unconfirmed reports: The original source (Reddit) is a tier-3 source, so the talks may not materialize [1].
  • Overvaluation: GOOG’s ~52% rally since mid-September raises concerns about potential overvaluation if the TPU deployment does not scale as expected [0].
  • Competitive response: NVDA may counter with price cuts or new product launches to retain market share [0].
• Opportunities
  :
  • For GOOG: Capturing a share of Meta’s AI chip demand could boost long-term revenue [0].
  • For META: Cost savings from TPUs may improve margins and EPS [1].

• GOOG
  : After-hours rise of ~2% to $327; 52% rally since mid-September; market cap of $3.86T [0].
• NVDA
  : After-hours drop of ~2.05%; current market cap of $4.30T (larger than GOOG) [0].
• META
  : Potential cost savings from TPU adoption; positive sentiment in after-hours [0].
• Key Notes
  : The claim that GOOG will surpass NVDA by year-end is unsupported by current market cap data [0].