Key Takeaways
- Alphabet jumps 4% as Meta reportedly considers Google’s TPUs, while Nvidia falls.
- Investors are anticipating a shift in competitive dynamics in AI hardware.
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Alphabet stock (GOOG) surged around 4% in premarket trading on Tuesday, while Nvidia (NVDA) slipped 3% following a report that Meta may tap Google’s AI hardware.
According to The Information, Mark Zuckerberg’s company is exploring a multiyear purchase of Google’s tensor processing units (TPUs) in a bid to diversify its AI hardware supply and reduce its reliance on Nvidia. The talks reportedly include renting TPUs as early as next year and deploying them more broadly by 2027.
The news pushed Alphabet shares higher overnight, extending Monday’s 6% rally. According to Yahoo Finance, the stock reached a fresh all-time high and is on track to reach $4 trillion in market capitalization.
Alphabet’s performance has been strong throughout the month, with shares up around 22%, boosted in part by Berkshire Hathaway’s investment.
Warren Buffett’s company acquired 17.8 million Alphabet shares, worth approximately $4.3 billion, in the third quarter of 2025, its first major move into a leading Big Tech name.
