Here’s How Much TPUs Could Boost Google’s Profit By, According to Morgan Stanley

Tech giant Google (GOOGL) might be looking to sell its custom AI chips, called tensor processing units (TPUs), to social media firm Meta (META). As a result, Morgan Stanley (MS) says that this could give Google a small but meaningful boost in sales and profits. According to five-star analyst Brian Nowak, who has a Buy rating and a $330 price target, if Google sells about 500,000 TPUs, that could add around $13 billion (about 11%) to its 2027 Google Cloud revenue estimate and raise earnings per share by about 3%, or $0.37.

The analysts also explained that if Google’s cloud business grows faster and it gains more ground in semiconductors, the stock price could go higher. They think that selling 500,000 to 1 million chips isn’t unrealistic, especially since Nvidia (NVDA) is expected to ship around 8 million GPUs in 2027 if enough supply is available. Still, investors don’t know exactly how Google will sell the TPUs, what the business model will be, how much they’ll cost, and what tasks the chips can handle.

This potential shift could also affect other chip companies. Indeed, Morgan Stanley believes that Broadcom (AVGO), which helps design Google’s TPUs, would benefit. Nvidia and AMD (AMD), on the other hand, may not feel much of an impact. Interestingly, the analysts don’t expect any one company to dominate. They say that AI competition is still fierce, especially with models like Gemini and GPT-5, and the pace of progress will keep companies pushing forward.

Is Google Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on Google stock based on 31 Buys and seven Holds assigned in the past three months. Furthermore, the average Google price target of $312.00 per share implies that shares are trading near fair value.

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