Alphabet (GOOG/GOOGL) is transitioning from an ad-centric model to a major AI chip and cloud provider, with TPU hardware sales driving future growth. TPU-related cloud revenue is expected to accelerate, supported by multi-billion-dollar customer contracts and a $514 billion cloud backlog already booked. Regulatory risks are diminishing, with recent court decisions averting forced divestitures, while search market share and AI integration remain robust.
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