Analyst: Google's TPU Chips Poised to Drive Turnaround Despite AI Model Lag

Alphabet shares have retreated from their May highs as the company faces stiff competition from OpenAI and Anthropic in the AI model race. However, Seeking Alpha analyst JR Research argues that the market is overlooking Google's strategic shift toward Google Cloud and its proprietary TPU chips. With TPUv7 (Ironwood) offering superior price-performance and new hardware access channels via Google Cloud, analysts project Alphabet's revenue could reach $730 billion by FY2028. The stock is currently trading near its five-year average forward P/E ratio, which analysts suggest may present an attractive entry point for investors.