Google's Latest TPU Advances Make the AI Hardware Race Feel Less One-Sided

Ahead of Alphabet’s Q1 2026 results, the article frames the print as a test of Google’s AI infrastructure strategy rather than just topline beat-or-miss. Management’s push of in‑house TPUs (seventh‑gen “Ironwood”) — cited as delivering a 78% reduction in Gemini serving unit costs in 2025 — and a large $175B–$185B 2026 capex plan are central. If TPU economics translate into cloud margin gains and clear customer wins, the capex commitment looks strategic and could weaken NVIDIA’s dominance, supporting further upside in Alphabet shares. Markets are leaning bullish (heavy buy ratings, recent strong share gains), but the key risk is capex absorption and margin commentary in the print.