Nvidia shares fall 8% after hours as Google unveils two new TPU systems
Key Facts
Nvidia shares fell 8% after the market closed on November 11, after rising 2.9% during the regular session, according to Reuters. The decline followed a Wall Street Journal report that the company's board was preparing to oust Chief Executive Jensen Huang. On the same day, Google announced two new artificial intelligence processing systems in its TPU family, expanding the computing options available to customers. Google said the systems were designed for different uses, one for secure and confidential inference and the other for handling large context windows and higher computing density per rack. Nvidia closed at $173.73, while Alphabet closed at $293.45, according to EL7 data.
Google introduced the TPU 8tx system for secure and confidential inference, saying its latency can be half that of the TPU 8t. The design targets inference tasks that require a fast response while maintaining processing confidentiality. The TPU 8i Max, meanwhile, combines two TPU 8i chips in a single package, and the company said it doubles computing capacity, SRAM and HBM memory bandwidth compared with the TPU 8i. Google said these specifications link the size of the model that can be served with performance density within the rack. The company did not tie the announcement to a specific forecast for TPU sales in 2027.
Google said its TPU business was growing rapidly, with nearly 100 customers as of November 9, 2026, including leading laboratories, trading and retail companies, and universities. That figure signals the breadth of the usage base the company is seeking to turn into a cloud business, alongside sales of the systems themselves. In the third quarter of 2026, Google Cloud posted revenue of $30.7 billion, up 103% year over year, according to Alphabet's filing with the U.S. Securities and Exchange Commission. The company said TPU system sales contributed materially to revenue growth during the quarter. It attributed Google Cloud's growth to strong performance across infrastructure and enterprise AI solutions, as well as core Google Cloud Platform services.
The TPU 8tx uses the same silicon as the TPU 8t but is paired with fifth-generation hosts powered by AMD EPYC processors, according to Google. This highlights one aspect of the surrounding infrastructure: the system consists not only of a TPU chip, but also of the host processors that run it. Google's announcement comes as Nvidia faces scrutiny over its China business and Huang's leadership. Reuters said the debate had drawn scrutiny from lawmakers, the company's board and investors, and renewed discussion in Washington over sales of advanced AI chips to China. That pressure continues alongside Google's expansion of its TPU systems and related cloud computing services.
The Associated Press reported that Nvidia's board said it had confidence in Huang and saw no reason to believe there had been a national security breach or a breach of company secrets. Huang has led Nvidia for 33 years, according to the agency, which said the debate could add to pressure on the company amid political discussions over AI regulation. Despite the stock's after-hours decline, its close at $173.73 in the November 11 session followed gains during regular trading. The stock move came after the Wall Street Journal report about a possible ouster of the chief executive, while the Reuters report cited in the evidence did not confirm a leadership change. The company's upcoming results remain a near-term opportunity to follow what Nvidia announces about its business.
Nvidia scheduled a call to discuss its third-quarter fiscal 2027 results for November 17; the quarter ended on October 25, 2026. The company said it would release its results about 1:20 p.m. Pacific time before the call. This gives investors a chance to follow the results for the completed fiscal period, along with any information the company provides about its business. The date falls after the November 11 session in which the stock declined after the close. It also comes as Google rolls out new TPU products and reports a customer base approaching 100, with system sales contributing to cloud revenue growth.