Archive · 25 Nov 2025
Nvidia Stock Drops on Meta-Google Chip Deal Reports
Nvidia's stock dropped by 2.7% after reports that Meta and Google might make a deal to use Google's chips instead of Nvidia's.
Meta has been a big customer of Nvidia, but they are now talking about using Google's tensor processing units (TPUs) in their data centers starting next year and investing billions in them from 2027.
Google's TPUs are seen as a cheaper and more secure alternative to Nvidia's chips.
This deal could help Google take a big part of Nvidia's business.
Other companies like Anthropic PBC have also signed deals with Google for their chips.
In Asia, stocks related to Alphabet, like IsuPetasys Co.
and MediaTek Inc., saw big jumps in their stock prices.
This shows that many people are interested in Google's chips as an alternative to Nvidia.
Alphabet's stock has also been doing well, with a 2.6% jump to $327 and a 6.28% increase to $318.47 the previous day.
Some experts think it could go even higher to $345.
Nvidia's stock fell 2.7% on reports of a potential Meta-Google chip deal.
Meta is in talks with Alphabet to rent Google Cloud's chips and invest billions in them from 2027.
Google's TPUs are seen as a cheaper and more secure alternative to Nvidia's chips, aiming to capture 10% of Nvidia's revenue.
Anthropic PBC has already signed a deal with Google for up to 1 million chips.
Alphabet's stock extended gains, jumping 2.6% to $327, with analysts predicting a potential rise to $345.
- Who
- Nvidia, Meta, Alphabet (Google), Anthropic PBC, IsuPetasys Co., MediaTek Inc.
- What
- Potential Meta-Google chip deal affecting Nvidia's stock and Alphabet's stock gains
- When
- Reports surfaced on 25 November 2025
- Where
- Global tech market, with specific impacts in South Korea and Taiwan
- Why
- Meta and Alphabet are discussing renting Google Cloud's chips and investing in them, potentially reducing reliance on Nvidia
Optimistic View
Pessimistic View
Stock Performance
Optimistic View
Alphabet's stock has shown strong gains, with a 2.6% jump to $327 and a 6.28% increase to $318.47 the previous day, indicating robust market confidence.
Pessimistic View
Nvidia's stock fell 2.7%, reflecting concerns about potential loss of a major customer and revenue.
Market Sentiment
Optimistic View
Analysts predict Alphabet's stock could reach a new all-time high of $345, driven by strong market momentum and a well-structured breakout.
Pessimistic View
The potential Meta-Google deal could significantly impact Nvidia's market share, particularly if Google's TPUs capture 10% of Nvidia's revenue.
- Nvidia Stock Decline
- 2.7%
- Meta's Potential Investment
- Billions from 2027
- Google's TPU Revenue Goal
- 10% of Nvidia's revenue
- Anthropic PBC Deal
- Up to 1 million chips
- IsuPetasys Co. Stock Jump
- 18%
- MediaTek Inc. Stock Rise
- Almost 5%
