Analysis of GOOG After-Hours Surge on Meta's Potential TPU Adoption & Impact on NVDA

On November 24, 2025, Alphabet Inc. (GOOG) shares surged ~2% in after-hours trading to $327 following reports Meta Platforms (META) is evaluating Google’s Tensor Processing Units (TPUs) for its data centers [0,2]. This news aligns with GOOG’s 52% rally since mid-September, fueled by Gemini 3’s positive reception [0]. NVIDIA (NVDA) shares fell ~2.05% in after-hours, reflecting investor worries over competition from Google’s custom AI chips [0,1].

1. AI Chip Competition Shift
   : Cloud providers’ custom chips (like Google’s TPUs) challenge NVDA’s GPU dominance in AI accelerators [1].
2. GOOG’s Strategic Expansion
   : Offering TPUs to external clients (Meta) opens new revenue streams beyond Google’s own data centers [0].
3. NVDA’s Reliance Risk
   : NVDA’s 1-month decline (-12.83%) highlights concerns over client attrition to custom chip providers; data center revenue accounts for ~88% of its total [0,9].

• Risks
  : NVDA faces client loss risk; GOOG may encounter TPU production supply chain constraints [0].
• Opportunities
  : GOOG gains potential TPU revenue growth; Meta could see EPS boosts from cost savings [0,1].

• GOOG Nov24 after-hours price: $327 (+~2% from $318.47 regular close) [0].
• NVDA Nov24 after-hours change: -~2.05% [0].
• GOOG’s 52% rally since mid-Sept [0].
• NVDA’s 1-month decline: -12.83% [0].

This analysis does not constitute investment advice; due diligence is recommended [0].