According to a report from D.A. Davidson, the TPU and AI business could be worth $700 billion as a standalone entity, almost a third of Alphabet’s current market cap. Today, Alphabet’s TPUs power AI operations in data centers, while DeepMind invests billions of dollars in research and development to compete with OpenAI.

Nvidia was gaining early on Wednesday after Google-parent Alphabet committed to spending on artificial-intelligence infrastructure and rival Advanced Micro Devices’ AI chip revenue disappointed. Nvidia shares were up 0.

Key Takeaways Nvidia and Broadcom shares surged Wednesday after Google parent Alphabet, a customer of both chipmakers, said it plans to ramp up spending on artificial intelligence. Alphabet said Tuesday that it plans to spend as much as $75 billion in capital expenditures this year,

Alphabet shares fell 7.2 percent on Wednesday after reporting fourth-quarter revenue below Wall Street forecasts and revealing substantial spending plans for artificial intelligence (AI) expansion, according to CNBC. This decline marked the stock’s worst performance since January 2024.

US stocks mostly gain early Thursday as investors weigh earnings reports. Amazon results are due after the close and monthly jobs on Friday.

Google’s parent company is weighing on a mixed Wall Street Wednesday as the focus swings back toward how much profit businesses are making.