Shares of Alphabet Inc. saw a significant increase of 2.1% on November 28, 2025, driven by a notable shift in retail investor sentiment, which surged to a bullish 64. In contrast, sentiment surrounding NVIDIA Corporation experienced a decline, dropping to a bearish 33. This shift was largely catalyzed by reports indicating that Meta Platforms Inc. is in advanced negotiations to invest heavily in Google’s Tensor Processing Units (TPUs) rather than NVIDIA’s graphics processing units (GPUs). Such developments suggest the emergence of a potential crack in NVIDIA’s previously unassailable market dominance.
Investor sentiment and confusion were captured in a post on the subreddit r/stocks by a user known as One-Blacksmith-4654. The post, which garnered 734 upvotes, articulated the perplexity felt among investors as Alphabet appeared to move toward a multi-trillion-dollar valuation, while NVIDIA faced substantial losses in market cap despite high demand for its GPUs. “None of this lines up with the narratives we were all trading on earlier this year,” the user remarked.
Amid the growing competition, discussions have intensified, particularly following Meta’s focus on Google’s AI chips. A commentary on r/StockMarket elaborated that, in response to the news about the potential deal, NVIDIA issued a rare public statement defending its market position—a move usually designed to quell investor fears. The immediate fallout saw NVIDIA lose approximately $250 billion in market value, while Alphabet experienced a notable uptick as the legitimacy of TPUs as a viable alternative became more recognized by Wall Street.
Several factors contributed to the bullish sentiment surrounding Alphabet:
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Cost Advantage: Research cited in r/wallstreetbets indicated that Google’s TPUs are priced about 2x lower than NVIDIA GPUs in standard configurations, making them an attractive option for potential customers.
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Software Enhancements: Google’s recent software improvements aim to dismantle CUDA’s longstanding monopoly, enabling smoother onboarding for TPU chips.
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Market Share Potential: Estimates suggest that potential TPU customers could account for up to 10% of NVIDIA’s annual revenue, highlighting the competitive threat posed by Google’s offerings.
In the wake of NVIDIA’s stock decline, a Google DeepMind TPU engineer commented on X, emphasizing that the market does not fully grasp the hardware demand. This sentiment resonated across r/StockMarket, earning 436 upvotes and asserting that, despite the stock market’s volatility, demand for AI hardware remains robust.
From a technical perspective, Alphabet’s Relative Strength Index (RSI) reached 73.73 on November 28, indicating overbought conditions that have persisted above the 70 mark for over a week. Alphabet’s stock is trading close to its 52-week high of $328.67, representing a remarkable 131% increase since its low of $142.36 in November 2024. With a market capitalization exceeding $3.86 trillion and cloud revenue growing by 34% year-over-year, reaching $15.2 billion, the fundamentals appear to justify the current rally.
As the competition between NVIDIA and Alphabet intensifies, observers are advised to monitor any further developments regarding customer acquisitions for TPUs and NVIDIA’s competitive responses, as the dynamics of the hardware market continue to evolve.
