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%) |
1. NVDA Falls as Meta Eyes Alphabet Chips
Nvidia (NVDA +1.83%) dropped over 3% in early hours trading following a report from The Information detailing how Meta (META +3.23%) is in discussions to buy AI chips from Alphabet (GOOG +6.34%), which rose up 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 through to AI sustainability, Nvidia refuted all allegations.
2. Alphabet Enthusiasm Fuels Nasdaq Surge
The Nasdaq recorded its largest one-day gain since May 12, gaining 2.7%, driven by optimism around Alphabet's Gemini 3 AI model launch and an 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 (CRM 0.13%) 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."
3. ZM and BABA Outperform on AI
Stock Advisor recommendation Zoom (ZM 0.04%) 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 (BLBD +1.93%) was up over 3% after earnings, with Fluence Energy (FLNC +2.60%) 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 (BABA +5.10%) jumped almost 5% ahead of the opening bell as quarterly revenue beat expectations, with the cloud intelligence division revenue growing by 34%.
4. S&P 500 Inclusion Lifts SanDisk 13%
SanDisk (SNDK +13.45%) 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 (WDC +8.44%) 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 (CRWD +3.27%), 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.
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.