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Market Data Table

Breakfast News: GOOG Chips Threaten NVDA

November 25, 2025

Monday's Markets
S&P 500 6,705 (+1.55%)
Nasdaq 22,872 (+2.69%)
Dow 46,448 (+0.44%)
Bitcoin $88,669 (+0.96%)

Chart comparing Nvidia's and Alphabet's revenue growth over the past three years.

1) NVDA Falls as Meta Eyes Alphabet Chips

Nvidia (NASDAQ:NVDA) dropped by over 3% in early hours trading following a report from The Information detailing how Meta (NASDAQ:META) is in discussions to buy artificial intelligence (AI) chips from Alphabet (NASDAQ:GOOG), which rose by more than 3% in pre-market trading.

Establishing tensor processing units as a viable alternative to Nvidia's chips: The talks suggest Alphabet is making headway in competing with Nvidia on AI hardware after already announcing a deal to supply Anthropic with up to a million of the same chips last month.
"Nvidia does not resemble historical accounting frauds because Nvidia's underlying business is economically sound": Elsewhere, in a seven-page memo released to address recent criticisms and claims surrounding the company, ranging from accounting policies to AI sustainability, Nvidia refuted all allegations.

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2) Alphabet Enthusiasm Fuels Nasdaq Surge

The Nasdaq recorded its largest one-day gain since May 12, up 2.7%, driven by optimism around Alphabet's Gemini 3 AI model launch and the announcement of a cloud deal struck with NATO.

"I've used ChatGPT every day for 3 years. Just spent 2 hours on Gemini 3. I'm not going back. The leap is insane”: Salesforce (NYSE:CRM) CEO Marc Benioff praised the Gemini upgrade, citing the reasoning and speed. Even OpenAI CEO Sam Altman posted on social media that it "looks like a great model."
"Alphabet is building its next generation of products and services that will likely become increasingly prominent": Last week, Motley Fool CEO and co-founder Tom Gardner said "Alphabet's current earnings power, its upside from its moonshots, and its current price make it arguably the best value among the Magnificent Seven."

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3) ZM and BABA Outperform on AI

Stock Advisor recommendation Zoom (NASDAQ:ZM) rose almost 4% after the market closed, thanks to strong results and a rosy outlook, with CEO Eric Yuan saying, "We're thrilled to see AI Companion adoption grow meaningfully."

Upbeat guidance for 2026 helping to drive respective stocks higher: Ahead of the market open, Blue Bird (NASDAQ:BLBD) was up over 3% after earnings, with Fluence Energy (NASDAQ:FLNC) almost 15% higher following results. Both companies impressed the market with the outlook for the coming year.
Strong early benchmark set for Tuesday reporting: As detailed in yesterday's Breakfast News, today is a busy one, with many well-known companies reporting. Alibaba (NYSE:BABA) jumped almost 5% ahead of the opening bell as quarterly revenue beat expectations, with the cloud intelligence division revenue growing by 34%.

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4) S&P 500 Inclusion Lifts SanDisk 13%

SanDisk (NASDAQ:SNDK) jumped over 13% as confirmation came of its promotion to the S&P 500 as of this Friday, in a rare move for a stock to move from the S&P Small Cap 600 index straight to the main index.

A Q1 spinoff already up 530% since February: SanDisk was made a stand-alone company from Western Digital (NASDAQ:WDC) earlier this year and has enjoyed strong demand for flash memory and other chip sales.
Landing major index inclusion could spur rally on further: SanDisk will be hoping to mimic the performance of CrowdStrike (NASDAQ:CRWD), which is up 36% since its S&P 500 inclusion in June 2024, also beating the index by 36% since the Hidden Gems rec last November.

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5) Your Take

What other small-cap stocks do you think have potential to make the leap to the S&P 500 in the next 12 months, and why? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.

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