Alphabet Stock Surges as Meta Considers Google’s TPU Chips

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Alphabet Stock Surges as Meta Considers Google’s TPU Chips

Alphabet’s stock has entered a powerful new phase, climbing to fresh record highs as optimism swells around its AI and cloud ambitions. A series of developments—ranging from Meta’s interest in Google’s TPU chips to the launch of Gemini 3.0—has positioned the company as one of the most influential forces in the AI industry today.

Alphabet Hits New Record Levels

Alphabet shares reached an all-time high after reports revealed that Meta is in talks to purchase and rent Google’s Tensor Processing Units (TPUs) for its expanding AI data centers. Early details suggest Meta may commit billions of dollars not only to secure TPU capacity but also to rent additional units through Google Cloud. According to these reports, the arrangement could begin as soon as next year, with large-scale deployment expected by 2027.

The potential partnership was widely interpreted as a strategic validation of Google’s long-term chip development efforts. Investors also saw this as evidence of rapidly growing demand for specialized AI hardware—an area where Alphabet seeks to gain ground against market leader Nvidia.

AI Leadership Strengthens With Gemini 3.0

Alphabet’s momentum received an additional boost as Gemini 3.0 achieved breakthrough results in generative AI benchmarks. Independent industry tests suggested that Gemini outperformed ChatGPT across most categories, reinforcing Alphabet’s strong positioning in advanced AI models.

Combined with a robust Q3 earnings performance and Berkshire Hathaway’s newly increased holdings, the launch of Gemini 3.0 helped spark Alphabet’s strongest multi-day rally in months. Over just two sessions, the stock surged roughly 9%, reaching levels above $329 in premarket trading.

Impact on Google Cloud and Revenue Vision

The prospect of Meta adopting TPUs highlights Alphabet’s long-term strategy: integrating its proprietary chips directly into the Google Cloud ecosystem. Alphabet has portrayed TPUs as a more cost-efficient and secure alternative to Nvidia’s GPUs, an advantage that appeals to enterprise clients looking to scale AI infrastructure.

Some sources report that Alphabet aims to capture up to 10% of Nvidia’s AI-chip revenue over the coming years—a target that reflects its accelerating ambitions in silicon design and cloud-based AI services.

Market Reactions and Technical Picture

The recent rally propelled Alphabet into overbought territory, with daily and 4-hour RSI readings hitting 75. While this level often triggers short-term profit-taking, the prevailing sentiment remains heavily bullish. Analysts suggest that continued buying momentum could push the stock toward $360 or even $400 if enterprise adoption metrics stay strong.

Investors also note that Alphabet’s valuation is approaching the $4 trillion mark—driven by optimism over its AI leadership, solid advertising performance, and expanding cloud business.

Conclusion

Alphabet’s recent surge reflects more than market enthusiasm—it marks a major shift in the competitive landscape of AI infrastructure. Meta’s potential adoption of Google’s TPUs signals growing confidence in Alphabet’s semiconductor vision, while Gemini 3.0’s strong performance underscores its leadership in generative AI. Whether the stock continues higher will depend on cloud adoption, AI services growth, and Alphabet’s ability to maintain technological momentum. But for now, the company stands at the center of one of the most dynamic evolutions in the technology world.

Sources