Alphabet Stock Rises as AI Chip Demand Surges
On Wednesday, Alphabet (GOOG) stock rose by nearly 2.8% after Piper Sandler highlighted strong demand for artificial intelligence chips from hyperscalers like Alphabet itself. The firm noted that TSMC is fully booked through the first half of 2028 with AI chip production orders, indicating sustained growth in the sector. Alphabet has not only been a major buyer but also recently started selling its own Tensor Processing Units (TPUs), designed by Google and manufactured by TSMC. Piper Sandler forecasts that combined GPU and ASIC sales will reach 14 million units this year with significant annual growth expected through 2028. Investors are viewing the news positively, as Alphabet's stock trades at a relatively low price-to-earnings ratio despite its large market cap of $4.1 trillion. The company is projected to grow earnings by over 14% annually for five years.
Topics: artificial_intelligence hyperscalers semiconductors supply_chain