Google’s TPU Sales Could Add $13B to Cloud Revenue by 2027, Morgan Stanley Says
Google's potential entry into the AI chip market with its tensor processing units (TPUs) could reshape semiconductor competition. Morgan Stanley estimates selling 500,000 TPUs might boost Google Cloud revenue by $13 billion (11%) and lift earnings per share 3% by 2027. Analyst Brian Nowak maintains a Buy rating with a $330 price target.
The move comes as Nvidia plans to ship 8 million GPUs in 2027, suggesting Google's 500,000–1 million unit target is plausible. Unanswered questions remain about pricing, use cases, and distribution models. The strategy could pressure other chipmakers while accelerating Google's cloud growth.