Alphabet Inc. (NASDAQ: GOOGL) closed at $337.42 on April 17, 2023, approximately 3% shy of its 52-week high of $349. The company is experiencing an 8% year-to-date stock increase, outperforming many mega-cap peers as it prepares for a significant announcement regarding AI chip development.
On April 20, reports indicated that Alphabet is in discussions with Marvell Technology (NASDAQ: MRVL) to co-develop two new AI chips—a memory processing unit and a new Tensor Processing Unit (TPU) dedicated to AI inference. This move reflects Alphabet’s strategy to diversify its chip supply chain, enhancing resilience in an increasingly competitive market. This comes just before Google Cloud Next, set for April 22 to 24 in Las Vegas, where a new TPU architecture is expected to be unveiled.
Addiitionally, Alphabet plans to invest $175 billion to $185 billion in capital expenditures by 2026, substantially higher than the $91.4 billion spent in 2025. This investment aligns with a Google Cloud backlog of signed contracts valued at $240 billion, illustrating demand-driven growth, evidenced by a 48% year-over-year revenue increase in Google Cloud, reaching $17.7 billion in Q4 2025.
