Alphabet jumps into the top ten in global market capitalization! Once TPU exports are launched, the AI chip market landscape will undergo a major change

The AI chip market is experiencing a power shift. Alphabet’s market capitalization approaches $4 trillion, making it one of the top ten companies globally by market value. Morgan Stanley’s latest analysis suggests that if this tech giant opens its self-developed AI chip TPU for external sales, it will fundamentally reshape the industry landscape long dominated by NVIDIA.

TPU Commercialization: From Internal Tool to Profit Engine

For a long time, Alphabet’s TPU was just a “secret weapon” for internal use, playing a key role in its AI computations. However, Morgan Stanley estimates that by 2027, Alphabet will be capable of supplying 500,000 to 1 million TPU units to the market, marking a watershed moment in the AI hardware industry.

Meta has already sensed the opportunity and is negotiating to purchase Alphabet’s dedicated chips worth billions of dollars. If this deal is finalized, Alphabet will not only turn its cost center into a new revenue stream but also directly erode NVIDIA’s dominance in the AI acceleration card market. Data shows that every 500,000 TPU units sold externally could boost Alphabet’s cloud revenue by approximately 11% and increase earnings per share by about 3%.

NVIDIA’s Monopoly Is Breaking, How Can New Competitors Win?

Currently, the AI chip market is highly concentrated, with NVIDIA controlling over 90% of the market share. Its market value once surged to $5 trillion. However, this monopoly is now being challenged.

Alphabet’s core competitiveness lies in the integrity of its software ecosystem and its customization capabilities. Years of R&D investment have made TPU highly compatible with existing systems, especially excelling in specific workloads. While NVIDIA emphasizes platform versatility and technological leadership, its influence is waning when faced with Alphabet, which holds a dual advantage of “model + chip.”

Market Expectations Are Shifting Behind Stock Price Gains

Alphabet’s stock has risen over 70% this year, far outperforming other tech giants. The successful launch of large language models like Gemini 3 has boosted its stock, and the fermentation of TPU external sales themes has further fueled the rally. In contrast, NVIDIA’s stock has retreated 11% since November, indicating that market funds are increasingly favoring Alphabet, which offers higher growth potential and a complete industry chain advantage.

This shift is not temporary but reflects investors’ re-evaluation of the future structure of the AI industry—winners are no longer just chip suppliers but full-stack players capable of integrating models, chips, and cloud services. As one of the top ten tech giants by market value, Alphabet is writing the prologue of this new era with its TPU export strategy.