Alphabet Closes In On $4 Trillion Market Cap After Surpassing Microsoft As Rumors Swirl Of Meta, Other Hyperscalers Turning To Google TPUs

Nvidia and AMD stocks dipped after reports that Alphabet could target roughly 10% of Nvidia’s annual revenue with expanded TPU sales.

• The company began using its in-house AI chip, the Tensor Processing Unit (TPU), developed with TensorFlow, in 2015.
• Broadcom helps Alphabet design and develop the TPUs.
• Meta is reportedly eyeing renting and buying TPUs from Alphabet.

Alphabet, Inc. (GOOGL) (GOOG) shares are set to cross the coveted $4 trillion market cap, with market talk that rival hyperscalers may use its artificial intelligence (AI) chip, providing an additional boost to the high-flying stock. 

The Google parent's stock ended Monday's session up 6.31% at $318.58 and added 3.13% in overnight trading, according to Yahoo Finance, overtaking software giant Microsoft Corp. in the process. To hit the $4 trillion mark, the Class A stock needs to reach $330.31. 

Taking On Nvidia

An Information report said Alphabet is in talks with Meta Platforms, Inc. (META) and other companies to use its Tensor AI chips, according to Investing.com. The company began using its in-house AI chip, the Tensor Processing Unit (TPU), developed with its TensorFlow software, in 2015, with third-party sales starting in 2018. It has been renting the chips to companies running large-scale AI workloads in its own cloud data centers.

Alphabet is reportedly now considering selling it for deployment in clients' data centers. Meta is in discussions with the search giant to integrate TPUs into its data centers, beginning in 2027. The deal would be worth billions of dollars. The Mark Zuckerberg-led company is also in talks to rent the chips as early next year.

According to the report, Alphabet has pitched the TPUs as capable of meeting stringent security and compliance requirements for sensitive data. Executives estimate that expanding TPU usage could help snare about 10% of Nvidia's annual revenue. 

Nvidia, AMD Stocks Fall

Following the report, Nvidia shares fell over 2% in overnight trading, after rising 2.05% during regular hours. Nvidia executives confirmed on the company's earnings call this month that it had $500 billion in bookings for its advanced AI chips in 2026.

AMD's shares traded down 1.80% overnight, while Broadcom (AVGO), which has an ongoing relationship with Alphabet regarding the TPUs, saw its stock climb 1.75%. Broadcom helps Alphabet design and develop the TPUs, with Google designing the tensor cores and Broadcom helping integrate memory interfaces, high-speed I/O, power management, and packaging technology with the cores.

What Retail Feels About Alphabet Stock

On Stocktwits, retail sentiment toward Alphabet stock shifted to 'extremely bullish' as of late Monday, up from 'bullish' a day earlier, and message volume remained at 'high' levels.

A user acknowledged that the sales of AI chips to big techs will be a huge revenue source for Alphabet.

Another user has already set their eyes on the $400 level.

GOOGL is up nearly 70% this year, perched at a record high, emerging as the best-performing "Magnificent Seven" stock of 2025. The company has benefited from a slew of positive headlines, including a less-than-severe antitrust ruling in September, the unveiling of a new quantum algorithm, the launch of the Gemini 3 model, which has received rave reviews, and Warren Buffett's Berkshire Hathaway initiating a position in the company.

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