Alphabet’s in-house tensor processing units are quickly becoming a potential new revenue engine as analysts forecast strong demand and a large market opportunity. The chips have helped fuel a 31% rally in Alphabet shares this quarter, and analysts told Bloomberg the TPUs could grow into a major business line. DA Davidson’s Gil Luria said the TPU business could ultimately surpass Google Cloud in value, while Morgan Stanley estimated that selling 12 million units could add about $13 billion in revenue by 2028. Alphabet hinted at external TPU sales through a multibillion-dollar supply agreement with Anthropic and ongoing talks with Meta. Google shares traded 0.65% higher at $321.70 in Thursday’s premarket session.
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