In collaboration with Broadcom, Google creates its own processors.
Alphabet investors seem to like the sound of the Facebook parent company’s increased artificial intelligence initiatives, while Meta Platforms investors may not know how to feel about them.
Following a story by The Information that Meta (META) was considering equipping its data centers with potentially billions of dollars’ worth of custom chips from Google, Alphabet (GOOG) (GOOGL) shares increased 2.7% in after-hours trading Monday, reaching new highs.
In the fiery market for AI infrastructure, the possibility of this advancement makes Alphabet a more formidable competitor to Nvidia (NVDA) and Advanced Micro Devices (AMD).
A request for comment from BourseWatch was not immediately answered by representatives of Google or Meta.
The report is the most recent indication of widespread AI momentum for Google. Tensor processing units and its own chips were used to train the company’s new Gemini 3 model, and it appears that outside interest in Google’s semiconductor work is growing.
Alphabet’s stock has increased 68% thus far in 2025, with the majority of that increase occurring in the last few months. This is indicative of optimism for Google’s TPU business and its Gemini AI model. The most recent version has received positive reviews in the tech community, supporting the idea that Google is positioned to win the AI race—possibly at OpenAI’s expense.
As Google’s momentum continued to grow, Alphabet’s suppliers’ shares also increased. In Monday’s extended trading, Broadcom’s stock (AVGO) rose 1.7% as the business collaborates with Alphabet on the TPUs. Aftermarket gains were augmented by those of two optical suppliers, Celestica (CLS) and Lumentum Holdings (LITE), whose stocks had disproportionate rises during Monday’s normal session.
The extended session on Monday saw a little increase in Meta’s stock price. Following the company’s most recent earnings report in late October, Wall Street was alarmed by the company’s talk of increased AI spending. Investors are still uncertain about the company’s ability to profit from all of its AI efforts. Although Meta claims AI has improved its recommendation engines and advertising solutions, the business has had trouble keeping up with competitors in terms of the pace of its AI chatbot.
The idea that what benefits Google and its network of suppliers isn’t always beneficial for AI players in general is also becoming more and more prevalent in the industry. Application-specific integrated circuits, such as Google’s TPUs, are not new, and the argument between ASICs and graphics processing units, such as those produced by Nvidia and AMD, is not new either. However, Google’s apparent internal and external momentum for its TPUs points to emerging rivalry for AMD, which already has a partnership with Meta and has been vying for more GPU business, and Nvidia, which is by far the most prominent vendor of AI hardware to a wide range of clients.
