Alphabet CEO Sundar Pichai Just Made a Decision That Could Move Nvidia and Broadcom Stock

2 weeks ago 26

Prosper Junior Bakiny, The Motley Fool

Sat, August 8, 2026 astatine 10:50 AM CDT 4 min read

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) posted blowout second-quarter results connected July 22. Many of the headlines focused connected the company's unreality business, and with bully reason. Google Cloud's income were $24.8 billion, 82% higher than the year-ago period. Sales maturation successful this concern accelerated importantly from the 63% Alphabet recorded successful the erstwhile quarter, and the tech person besides ended the play with a $514 cardinal unreality backlog.

Alphabet could proceed to spot its unreality concern execute good successful the adjacent fewer years, and the institution precocious began signaling a caller gross watercourse that whitethorn go a meaningful maturation operator implicit time, portion besides affecting different companies specified arsenic Broadcom (NASDAQ: AVGO) and Nvidia (NASDAQ: NVDA). Here's what investors request to know.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

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Multiple maturation pathways

Alphabet has been relying connected its TPUs (Tensor Processing Units) -- customized artificial quality (AI) chips designed to grip circumstantial workloads -- successful its unreality computing conception for immoderate time. The institution inactive orders chips from outer suppliers. But TPUs person go progressively important for Alphabet. And earlier this year, the company's CEO, Sundar Pichai, said it would commencement selling TPUs to prime extracurricular customers, fixed the soaring request for these products.

During Alphabet's second-quarter net league call, absorption announced that the institution had started to recognize gross from these sales. They are apt a minuscule portion of the company's full gross for now, but if request for these chips remains precocious enough, Alphabet could beryllium looking astatine different root of top-line growth. It would besides enactment the institution successful nonstop contention with Nvidia. Custom chips person immoderate advantages. They are cheaper than Nvidia's GPUs (Graphics Processing Units) and highly effectual astatine handling the workloads for which they were designed. They tin besides assistance companies trim their vulnerability to Nvidia, a meaningful perk adjacent beyond the outgo savings.

Now, wherever does Broadcom acceptable into each this? It has worked with Alphabet to plan TPUs, and the 2 companies person a semipermanent woody extending done 2031. So, if Alphabet's TPU income turn astatine a bully clip, that volition beryllium large for Broadcom's concern arsenic well. Now, does immoderate of this marque Alphabet banal a buy? The company's TPU concern whitethorn go an important maturation driver. Only clip volition tell. But for now, determination is inactive important uncertainty there. Meanwhile, determination are overmuch amended reasons to see the stock, and the company's high-flying Cloud concern is conscionable 1 of them.

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