Economy

Nvidia Shares Decline Following Report of Potential Meta-Google AI Chip Deal

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Nov 26, 2025

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Shares in chipmaker Nvidia fell on Tuesday following a report that Meta is considering using Google-designed artificial intelligence chips. According to the report, Meta may integrate Google's tensor processing units (TPUs) into its data centers by 2027 and could begin renting them through Google’s cloud services next year. Following the news, Nvidia's stock closed down between 3% and 4.3%, while shares of Google-parent Alphabet rose about 4.2%.

In response, Nvidia issued a statement on the social media platform X, asserting its technology is "a generation ahead of the industry." The company claimed its graphics processing units (GPUs) are more versatile and offer greater performance than competing chips, and that its platform is the only one capable of running every type of AI model. Analysts estimate Nvidia currently holds over 90% of the AI chip market. On a recent earnings call, Nvidia CEO Jensen Huang stated that Google remains a customer for its GPUs and that he was told by Google's DeepMind CEO that industry "scaling laws"—the principle that more chips create better AI—remain intact, which Nvidia believes will drive future demand.

The report has drawn attention to Google's custom TPUs, which the company uses for internal projects and rents to customers via its cloud platform. A Google spokesperson said the company is experiencing rising demand for both its custom TPUs and Nvidia GPUs and remains committed to supporting both technologies.

The market movements also affected other semiconductor companies. Shares for AMD and Arm declined on Tuesday, while stock in Broadcom, which a summary states helps Google design its TPUs, increased. The potential shift reflects an effort by some large technology firms to diversify their chip suppliers and reduce dependence on a single provider for AI hardware. According to Gil Luria, a technology analyst, the development makes it "less clear if there is room for AMD to be the number two in the market."

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• The company asserts its technological superiority over competitors. In a statement on social media, Nvidia claimed its technology is "a generation ahead of the industry." The company argued that its graphics processing units (GPUs) are more versatile and offer greater performance, and that its platform is the only one capable of running every type of AI model.

• Nvidia holds a commanding market share and expects future demand to remain strong. Analysts estimate that Nvidia currently controls over 90% of the AI chip market. The company’s CEO, Jensen Huang, stated that Google remains a customer for its GPUs and that industry "scaling laws"—the idea that more chips lead to better AI—remain intact, which Nvidia believes will continue to drive demand.

• The firm’s stock value reacted negatively to news of a potential rival deal. Following the report that Meta was considering using Google-designed chips, Nvidia's shares closed down between 3% and 4.3%. This decline occurred alongside a rise in the stock of Google's parent company, Alphabet, reflecting market sensitivity to potential shifts in chip supply dynamics.

How it may affect me

As a U.S. reader:

• The value of retirement funds or personal investments may see short-term changes, as stocks for Nvidia, Google, AMD, and Broadcom reacted to the news.

• Increased competition in the AI chip market could influence the future of AI-powered services from companies like Meta, though specific user impacts are unclear.

• A potential long-term shift away from a single dominant chip supplier could alter the structure of the U.S. semiconductor market, affecting major tech companies.

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