Saad Ullah
⬤ Google got a major demand upgrade from Morgan Stanley after analysts spotted fresh supply-chain signals pointing to much stronger TPU orders in the coming years. Charlie Chan now expects Google's TPU buying to ramp up significantly starting in 2027, marking a clear boost to the company's AI infrastructure plans.
⬤ Morgan Stanley's new numbers show Google buying around 5 million TPUs in 2027—that's about 67 percent higher than previous estimates. The forecast gets even more aggressive for 2028, with 7 million TPUs expected, representing a roughly 120 percent jump from earlier projections. The firm's data suggests Google will purchase approximately 12 million TPUs across 2027-2028 combined, compared to just 7.9 million units over the past four years. The stronger outlook comes from supply-chain bookings for upcoming TPU generations like v7 and v8, plus next-gen N+1 and N+2 nodes.
⬤ The report also mentions that previous TPU availability issues might be easing, which could help Google expand both internal computing power and cloud-based TPU services through Google Cloud Platform. This matches what's happening across the industry as major tech companies pour more money into custom AI chips to handle growing demand for large-scale computing.
⬤ This upgraded forecast matters because it shows the massive scale of Google's AI infrastructure buildout heading into the late 2020s. The accelerated TPU adoption could reshape competition in both cloud services and semiconductors, highlighting how crucial Google's custom AI hardware has become for its long-term market position and spending strategy.
Saad Ullah
