Will 8th-Generation TPUs Move the Needle for Google Stock?

Alphabet unveiled two 8th‑generation TPUs and is expanding chip partnerships as it ramps AI-focused capex, which management said could reach $175–185 billion in 2026. The new in‑house TPUs, Broadcom licensing ties and possible Marvell collaboration aim to support Google Cloud and AI demand, helping revenue and margin leverage over time despite higher near‑term spending. The stock has rallied (up ~118.6% over 12 months) and trades at a rich forward P/E (~28.8x) amid a Street consensus “Strong Buy” and an average $380.58 target. Analysts (e.g., Wells Fargo) raised targets on Cloud/TPU monetization prospects. Overall, the piece views the TPUs as a structural support for future earnings and sees the market reaction as more likely to be incremental upside rather than a negative on rising capex.