How this Google report has wiped away hundreds of billions from Nvidia's market value

 HOT OFFERS

Nvidia’s market value has reportedly gone down nearly 5% (which is more than $150 billion in market value) based on a single report. A recent report by The Information claimed that Facebook parent Meta is considering using Google-designed AI chips. The stock price of the US-based chipmaker, which is also the world's largest company by market capitalisation, began tumbling after the Google report was published. The drop reportedly occurred because Meta is currently one of Nvidia's most significant chip customers. Meanwhile, shares of Google-parent Alphabet rose sharply on this news. The report specifically stated that Meta could begin renting Google's Tensor Processing Units (TPUs) as soon as next year and potentially incorporate the chips into its own data centres by 2027.In a statement to CNBC, a Google spokesperson said: “Google Cloud is experiencing accelerating demand for both our custom TPUs and NVIDIA GPUs; we are committed to supporting both, as we have for years.” Google released its first TPU in 2018, initially built only for the company’s own cloud services. Since then, Google has created newer versions of the chip that can handle AI tasks more effectively. TPUs are special-purpose chips, which experts say give Google an edge because they can offer customers a highly efficient AI option.

If Meta decides to use TPUs, it would be an essential win for Google and a sign that the technology works well. Apart from Google, Broadcom shares, which help the company design TPUs, rose more than 2% after jumping 11% the day before.

Nvidia is still the leading player in the market with its GPUs, which power much of the AI infrastructure being built today. Nvidia is not expected to lose its position soon, but Google’s TPUs add more competition to the AI chip market.Companies developing AI systems are seeking more chip suppliers to reduce their reliance on Nvidia. Meta is one of the biggest spenders on AI, and the company expects to spend between $70 billion and $72 billion this year.

These stock movements come as people continue to debate whether an “AI bubble” is forming and whether tech company valuations are too high. Nvidia is central to that discussion. Last week, it reported stronger-than-expected sales for the current quarter, but tech stocks still fell afterwards.

# Google's TPU Gambit: The Report That Shaved $290 Billion Off Nvidia's AI Crown – And Why It's Just the Start

**Posted on November 26, 2025 | 

In the coliseum of AI supremacy, Nvidia has long reigned as the unchallenged gladiator, its GPUs fueling the frenzy that's ballooned its market cap to $3.5 trillion peaks. But yesterday, a single report from The Information landed like a digital dagger: Google is pitching its homegrown Tensor Processing Units (TPUs) to rivals like Meta, potentially siphoning billions from Nvidia's coffers. The fallout? Nvidia's shares cratered 6.6%, vaporizing a staggering $294 billion in market value – the fourth-largest one-day wipeout for any U.S. company ever. Ouch. As Alphabet's stock surged 6% to a record high, this isn't just a blip; it's a seismic shift in the AI chip wars. Buckle up – we're dissecting how one leak turned Nvidia's green empire red.

## The Bombshell Report: Google's TPUs Go Rogue on Nvidia's Turf

The spark? A scoop from The Information revealing Google in advanced talks with Meta Platforms for a multibillion-dollar deal to deploy Google's TPUs in Meta's data centers as early as 2027. Historically, TPUs – Alphabet's custom silicon beasts optimized for AI workloads – have been an in-house secret sauce, rented exclusively via Google Cloud. But now? Google is flipping the script, hawking them directly to hyperscalers like Meta, who could swap out Nvidia's pricey H100s for cheaper, tailored alternatives.

Tie in the timing: This drops hot on the heels of Google's Gemini 3 unveiling, its "state-of-the-art" AI model trained entirely on TPUs, outpacing rivals in benchmarks and efficiency. No wonder investors panicked – it's proof Google isn't just talking diversification; it's delivering AI firepower without Nvidia's middleman cut. Analysts peg the TPU opportunity at up to 10% of Nvidia's $100B+ annual revenue, with one firm valuing Google's AI chip arm at a cool $900 billion.

## The Bloodbath: $294 Billion Evaporated in a Blink

Nvidia's response? A 6.6% plunge in shares, from $148 to $138-ish, erasing that eye-watering $294 billion overnight. For context, that's more than the entire market cap of Ford, Delta, and Starbucks combined – poof, gone on fears of eroding dominance. The Nifty AI trade took a hit too: AMD tumbled 9%, Broadcom dipped 4%, while Meta and Google? Up 2-6%, feasting on the carcass.

It's not isolated – Nvidia's down 8% since its blowout earnings last week, despite a $500 billion revenue pipeline tease from CEO Jensen Huang. Wall Street's verdict: Overhyped valuations meet real rivalry. "Investors are waking up to the fact that Nvidia's moat isn't impenetrable," quipped Wedbush's Dan Ives. Even Huang pushed back publicly: "We supply Google – we're a generation ahead," but the market shrugged, betting on a multi-vendor future.

| Stock | Daily Drop | Market Cap Hit | Why? |

|-------|------------|----------------|------|

| Nvidia (NVDA) | -6.6% | -$294B | TPU threat to GPU monopoly |

| AMD (AMD) | -9% | -$50B+ | Collateral in chip wars |

| Broadcom (AVGO) | -4% | -$80B | AI ecosystem jitters |

| Alphabet (GOOGL) | +6% | +$150B | TPU expansion win |

## Why This Stings: Nvidia's AI Addiction Exposed

Nvidia's rocket ride – up 200% YTD – rode on being the default pickaxe in the AI gold rush. But as Big Tech builds its own shovels, the narrative cracks:

- **Cost Crunch**: TPUs could slash Meta's $10B+ annual Nvidia spend by 20-30%, per estimates. Google's efficiency edge (Gemini 3 trained 40% faster) makes it a no-brainer switch.

- **Ripple Effect**: Amazon's Trainium, Microsoft's Maia – everyone's cooking custom chips. If Meta bites, it greenlights a domino fall, crimping Nvidia's pricing power.

- **Valuation Reality Check**: At 40x forward earnings, Nvidia's premium screams "growth forever." This report whispers "competition now," triggering a derating.

Huang's crystal ball? "Trillions in AI infrastructure ahead." True, but if 10-20% shifts to rivals, that's $50-100B Nvidia could lose annually. Oof.

## The AI Arms Race Heats Up: Boon for Innovation, Bust for Monopolies?

Silver lining? This rivalry could turbocharge AI progress – cheaper chips mean faster models, broader access. Google’s play saves billions in capex while opening new revenue streams, potentially juicing Alphabet to $4T club status. For Nvidia? It's a gut-check: Innovate or imitate.

Brokers are split – Goldman holds "Buy" on Blackwell demand, but Piper Sandler warns of "peak Nvidia" vibes. As one X thread meme'd: "Nvidia: From AI king to court jester in one report. #TPUgate"

## The Bottom Line: Diversify Your Bets, AI Enthusiasts

This $290B haircut isn't Nvidia's obituary – it's a reality dose in a maturing market. With Blackwell shipments ramping and $1T data center TAM looming, the chip titan rebounds if it adapts. But for investors glued to the "Magnificent Seven," it's a reminder: Even emperors fall when vassals arm up.

Thoughts? Is Google's TPU push the death knell for Nvidia's reign, or just market noise? Hit the comments – and maybe hedge with some GOOGL calls.

*Sources: Barron's, Yahoo Finance, Seeking Alpha, Fortune, The Information, and market wires.*

Share: