3 Stocks Poised to Gain as Google Brings Its AI Chips to Market
Alphabet (GOOG -0.72%) (GOOGL -0.63%) isn’t just making AI chips for its own cloud platform and Gemini anymore. It’s also offering them for sale to other tech companies, and has even sent a few into space on a test satellite with the help of Space Exploration Technologies.
Google’s parent company first established itself as an online search and advertising giant, and it has now become a top cloud infrastructure provider. Soon, it could become a leading AI chipmaker as well, and if it does, these three stocks stand to benefit the most.
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1. Broadcom
Broadcom (AVGO -4.35%) is Google’s lead development partner for its Tensor Processing Units (TPUs). The two companies signed a long-term agreement to continue working together on Google’s current and future TPU generations.
Today’s Change
(-4.35%) $-16.37
Current Price
$360.14
Key Data Points
Market Cap
Day’s Range
$357.41 – $373.35
52wk Range
$289.96 – $495.00
Volume
27.1M
Avg Vol
22.4M
Gross Margin
66.54%
Dividend Yield
0.72%
The chipmaker already works with multiple tech giants, and said last month that it expects that AI lab Anthropic will become its largest XPU customer in 2027. (XPU is an umbrella term covering a wide range of specialized processors.)
There are some circular financing concerns regarding the multi-gigawatt chip deal between those two, since Broadcom is lending Anthropic $42 billion to purchase its chips. That risk doesn’t apply to Alphabet and other hyperscalers, though, and its dominant position in the custom AI chip race is regularly reflected in its financial results.
Broadcom’s fiscal 2026 second-quarter results indicated 48% year-over-year revenue growth. That included the company’s red-hot AI semiconductor segment, which was up by 143% year over year. AI semiconductor sales are expected to triple in the next quarter, accounting for almost half of Broadcom’s fiscal 2026 third-quarter revenue. If Google produces more TPUs, Broadcom stands to see continued acceleration for this part of its business.
2. Marvell Technology
Back in June, Nvidia CEO Jensen Huang predicted that Marvell Technology (MRVL -3.52%) would be the “next trillion-dollar company.” Unsurprisingly, the stock rallied after that statement, contributing to shares more than tripling so far this year. Marvell Technology has inked a partnership of its own with Google to help the hyperscaler develop custom chips, a fact that added fuel to Huang’s bold claim.
Today’s Change
(-3.52%) $-10.02
Current Price
$274.66
Key Data Points
Market Cap
Day’s Range
$265.79 – $283.90
52wk Range
$70.69 – $329.88
Volume
29.2M
Avg Vol
22.4M
Gross Margin
51.42%
Dividend Yield
0.09%
The AI trade is expanding rapidly enough that Alphabet is doing business with Broadcom and Marvell Technology for chip design work. That’s the type of situation where a rising tide can lift all boats, or, in this case, chipmakers. For Marvell Technology, it will mean up to $120 billion in revenue over the next six years, just from Google.
The deal with Marvell Technology also gave Alphabet the option to buy a $12.2 billion stake in the chipmaker at $206.58 per share, a significant discount to where it’s trading today. Cementing Alphabet as a large shareholder would provide financial incentives for Alphabet to further support Marvell Technology. It also serves as a major validation signal.
The business was surging even without the Alphabet deal. In Marvell Technology’s fiscal 2027 second quarter, revenue grew by 37% year over year to reach $2.74 billion. Marvell also anticipates $20 billion in fiscal 2028 revenue, which would be a significant jump. The partnership with Google will start to deliver revenue in Marvell’s fiscal 2029.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor (TSM -3.01%) manufactures chips for all the leading AI processor designers, including Nvidia and Alphabet. Though it’s the world’s largest chip foundry by far, demand for its services is outpacing its manufacturing capacity, which has given Taiwan Semiconductor Manufacturing more flexibility to raise its prices. That is producing higher profits. Moreover, the stock trades at a desirable valuation, with a price/earnings-to-growth (PEG) ratio of around 0.6. (Any stock with a positive PEG ratio of less than 1 is generally viewed as undervalued relative to its expected growth.)
If Google intends to become a leading AI chipmaker, it will have to ramp up its purchases from Taiwan Semiconductor Manufacturing. The company uses a chip-on-wafer-on-substrate model to pack components together. It’s essentially the final step in turning a collection of components into an AI processor for use in a data center.
It’s no surprise that sales continue to surge. Revenue increased by 36% year over year in the second quarter, and net income climbed even faster, resulting in a 55.6% net profit margin. Taiwan Semiconductor Manufacturing CFO Wendell Huang told investors to expect “continued strong demand” for its leading-edge process technologies.
