Recently, Google's self-developed AI chip The TPU (Tensor Processing Unit) has become the focus of market attention. With this chip, Google has not only achieved a breakthrough in the field of large-scale model development, but may also reshape the AI chip market landscape.
Recent reports indicate that Google is marketing its TPUs to customers, and Meta is considering spending billions of dollars to purchase Google TPUs for use in data centers. Construction has begun. This marks a significant shift in Google's strategy, as its TPUs were previously primarily used within its own cloud data centers .
Morgan Stanley The latest research report indicates that supply chain research shows that Google's TPU production is expected to increase significantly, which could bring substantial revenue growth to Alphabet .
According to Brian Nowak, an analyst at the bank, the latest signals from Asia suggest that "uncertainty surrounding TPU supply may have decreased," which could pave the way for Google to sell more of its custom AI chips to external parties .
Morgan Stanley Asia Semiconductor The team revised its forecast for Google's TPU production in 2027 upward from approximately 3 million units to 5 million units, an increase of 67%; and its forecast for TPU production in 2028 upward from approximately 3.2 million units to 7 million units, an increase of 120% .
This upward revision of expectations stems from supply chain signals obtained by analyst Charlie Chan, indicating that Google is preparing to significantly increase TPU deployments.
The financial impact of expanding TPU sales should not be underestimated. Morgan Stanley reiterated that "every 500,000 TPU chips sold could potentially add approximately $13 billion in revenue and $0.40 in earnings per share (EPS) to Google in 2027."
Morgan Stanley previously pointed out that Google may sell TPUs directly to third-party data centers , and believes that such external sales could become an important supplement to the Google Cloud Platform (GCP) product portfolio.
While most of the increase in TPU production will likely still be used for Google's own businesses and Google Cloud Platform (GCP), Nowak points out that "the production scale of 12 million TPUs in 2 years (compared to only 7.9 million in the previous 4 years)" highlights Google's potential to commercialize TPUs.
Morgan Stanley believes these trends may be an "early sign" of Google's brewing TPU sales strategy, as the company intensifies its efforts to capitalize on the industry-wide demand for advanced AI computing power.
Morgan Stanley analysts also pointed out last week that, considering Nvidia... Google expects to ship approximately 8 million GPUs (graphics processing units) in 2027, and its prediction of selling 500,000 to 1 million TPUs annually, if production capacity allows, is "not unreasonable."
Dongcai Illustrated Guide: Some Useful Tips
(Article source: CLS)
