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Alphabet Stock Rises 1.8% on AI Chip Demand

Google2 min read6 sources

Why did Alphabet stock rise 1.8%?

Alphabet (GOOGL) stock rose 1.8% to close at $298.70 on Thursday as investors eyed Google's AI chips, used by nearly 100 customers, after Nvidia's CEO resigned.

Key numbers

Alphabet close (Nov 12)$298.70+1.79% on the day
Companies using Google TPUsNearly 100Includes trading firms, retailers, universities
Google Cloud Q3 sales$30.7B+103% vs a year ago
Alphabet gain so far in 2026+4.4%Trails S&P 500 at +10.9%
Nvidia move on Nov 12-4.3% to -5.6%Sources differ on the exact drop

What happened

Alphabet (GOOGL) stock rose 1.8% to close at $298.70 on Thursday as investors eyed Google's AI chips, used by nearly 100 customers, after Nvidia's CEO resigned. Google Cloud's chief, Thomas Kurian, said those customers use its custom chips, called TPUs, including trading firms Citadel Securities and Jump Trading. Google will also let select customers install a new version, the TPU 8tx, in their own data centers instead of only renting chips through Google's cloud. Nvidia, the AI chip leader, said CEO Jensen Huang resigned, and its shares fell.

Why it matters

Alphabet is now selling its own AI chips to outside customers, not just using them itself, which puts Google in more direct competition with Nvidia. That could add a new source of sales, though most of the money from these on-site chip deals is not expected until 2027. Building the chips is costly: Alphabet spent about $9.1 billion more cash than it brought in last quarter.

Who this affects

Marketmixed
Medium impact
Alphabet holders gained while Nvidia holders lost on Thursday.
Companymixed
Medium impact
Alphabet gains a new revenue source, but spending is heavy.
Competitorsmixed
Medium impact
Nvidia faces a growing rival; Broadcom, which designs TPUs, gains.
Industrybullish
Medium impact
Buyers gain more choice beyond Nvidia for AI computing power.

Alphabet vs Nvidia, Broadcom, Microsoft

AlphabetGOOGL~$3.6T+1.8%+4.4%19.7x
NvidiaNVDA$4.01T-4% to -6%+10.7%11.0x
BroadcomAVGO$1.74T+5.5%+5.3%18.4x
MicrosoftMSFT$3.88T+0.4%+8.8%25.8x

As of 2026-11-12

How we got here

  1. Google unveils TPU 8tx and TPU 8i Max, saying nearly 100 customers use its TPUs.

  2. Nvidia says CEO Jensen Huang resigned; CFO Colette Kress becomes interim CEO.

  3. Alphabet closes at $298.70, up 1.8%, while Nvidia ends the day lower.

What to watch

  • Whether Nvidia names a permanent CEO to replace Jensen Huang.Ongoing
  • Most revenue from Google's on-site TPU deals is expected to arrive in 2027.2027
  • Alphabet's next earnings: TPU sales against its $195B–$205B 2026 spending plan.Q1 2027

Educational content only. Not investment advice.

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