Alphabet Stock Climbs 31% as Retail Traders Bet on TPU Price War With NVIDIA

By Douglas A. McIntyre Published Dec 1, 2:01PM EST

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Google (GOOGL) shares surged 31% in one month driven by excitement around TPU processors competing with NVIDIA.
Google’s TPUs are priced at half the cost of NVIDIA GPUs at scale according to retail analysis.
Gemini reached over 650M monthly active users.

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Alphabet Stock Climbs 31% as Retail Traders Bet on TPU Price War With NVIDIA — © William Potter / Shutterstock.com

Shares of Alphabet Inc. (NASDAQ: GOOGL | GOOGL Price Prediction) have surged approximately 31% over the past month, climbing from around $244 in early November to above $320 in early December. The rally has energized retail investors on Reddit and X, where bullish sentiment has strengthened significantly throughout November. The surge follows growing excitement around Google’s TPU processors, which retail traders view as a direct challenge to NVIDIA Corporation (NASDAQ: NVDA) in the AI chip market.

TPU Hype Fuels Retail Conviction

Discussions on r/wallstreetbets have intensified around Google’s Tensor Processing Units, with traders arguing the chips offer a decisive cost advantage over NVIDIA’s GPUs. One widely shared analysis breaks down the competitive landscape in detail. As the Reddit user wrote: “Google’s TPUs are 2x cheaper than Nvidia GPUs at scale” and warned that “Nvidia will most likely see margin compression to 60% in the next year or 2” as Google floods the market with lower-priced alternatives.

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The bullish case rests on three pillars:

TPU pricing undercuts NVIDIA by roughly 50%, threatening NVIDIA’s dominance in AI infrastructure
Meta and xAI are rumored to be evaluating Google Cloud and TPUs, potentially shifting billions in compute spending
Gemini adoption has surged to 650M+ monthly active users, validating Google’s full-stack AI strategy

Adding fuel, Elon Musk’s recent comments about Google have circulated widely on Reddit. In a podcast discussion, Musk stated that Google has “laid the groundwork for an immense amount of value creation from an AI standpoint,” grouping Alphabet with NVIDIA as his top AI plays.

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Overbought but Still Running

Despite an RSI of 73.51, well into overbought territory, momentum remains strong. The stock peaked at $328.83 on November 25 before consolidating around $320. Volume spiked to 85M shares during the breakout, suggesting institutional participation rather than purely retail-driven hype. Barron’s recently reiterated its bullish call on Alphabet, citing TPU competitiveness and Gemini’s leadership in AI models. Retail sentiment appears to be catching up to price action rather than leading it, with traders now piling in after the initial surge.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.