Nvidia (NVDA) shares were volatile this week after news that Meta (META) is in talks to buy billions of dollars of Google (GOOG) chips starting in 2027. The move would position Alphabet as a direct challenger in the data center processor market that Nvidia currently leads.
Meta is considering using Google’s tensor processing units (TPUs) in its own data centers and may also rent Google Cloud chips as early as next year, Reuters reported. The shift would end Google’s long practice of keeping TPUs inside its own facilities and could significantly expand the addressable market for its chips.
Nvidia shares fell about 2.59% on Nov. 25, while Alphabet rose 1.53%.
Both Google and Meta are Nvidia’s largest customers and have planned to invest billions in AI infrastructure.
The Google-Meta chip agreement would mark a major milestone for Google as well as a potential threat for Nvidia. The news comes as demand accelerates for alternatives to Nvidia’s expensive graphics processors.
Nvidia CEO rejects “AI bubble” talk
Nvidia has become the most valuable publicly traded company amid the AI boom. On Nov. 19, the company posted fiscal third-quarter results that beat Wall Street forecasts on both earnings and revenue, and issued guidance for the fourth quarter that also came in ahead of expectations.
Nvidia reported adjusted earnings of $1.30 per share, up 65% from a year earlier, topping the $1.25 that analysts had expected. Revenue reached $57.01 billion compared with the $54.92 billion estimate. However, Nvidia shares fell 3.15% the following day, which added to fears around the “AI Bubble” talk.
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Nvidia CEO Jensen Huang recently rejected the idea of an AI bubble.
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” Huang said during an earnings call.
Huang said three big shifts are happening: Computing is moving from CPUs to GPU-accelerated systems as Moore’s Law slows; AI has reached a tipping point and is reshaping applications; and a new wave of “agentic AI systems” is emerging that can reason, plan, and use tools.
“As you consider infrastructure investments, consider these three fundamental dynamics,” Huang added. “Nvidia Corporation is chosen because our singular architecture enables all three transitions.”
“This is still a 1996 moment,” analyst says
There may be other big tech names entering the AI chip race. Still, “the AI revolution starts and ends with Nvidia, and that is not changing for another few years,” Wedbush analyst Dan Ives said, as reported by TheFly.
He also called the company the “Rocky Balboa champion of the AI Revolution” and indicated that Google TPU is not “shaking Jensen.”
Ives has long been bullish on Nvidia stock. He says what’s fueling the next chapter of growth is the enormous spending from tech hyperscalers, and that is not slowing down into 2026.
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“This is still a 1996 Moment…and not a 1999 Tech Bubble Moment,” Ives said in a Bloomberg interview.
“We view [the pressure] as a short-lived digestion moment for tech stocks as we believe tech stocks will have a rally into the rest of the year as investors look to play the AI Revolution and the 2nd/3rd/4th derivatives now just starting to play out across consumer and enterprise names,” he added in a research report.
Nvidia stock is up roughly 34% year to date.
