The Motley Fool
28 Oct 2026, 07:50 UTC · 1h ago
Why Alphabet's Own AI Chips May Be Its Quietest Advantage
Impact · against what's priced in
Alphabet's pivot to selling TPUs as direct hardware creates a new revenue stream and structural advantage that the market currently ignores, while intensifying competitive pressure on Nvidia. However, the growth in Cloud revenue and the massive backlog are already largely reflected in current valuations.
- GOOGL+0.40
Challenges what's priced in
- The price assumes
Waymo or Other Bets creating measurable option value, which the price assigns near zero
The price currently assigns zero value to non-core options, but Alphabet is now selling TPU hardware directly to customers for their own data centers, creating a new hardware product business beyond Cloud services.
What GOOGL's price assumes · Sep 2
