‼️ 🧠 Morgan Stanley analyst Brian Nowak raised Google’s custom TPU (tensor processing unit) revenue outlook, citing reports that Google has committed to supply roughly 1 million TPUs (~1.3 GW) for about $35 billion—implying ~$27 billion per GW, up from the firm’s prior $20 billion/GW assumption at 20% gross margin. The bank now models 1P TPU system sales at $27 billion/GW with a 30% gross margin, supported by Google’s expanded custom-silicon deal with Marvell (MRVL). On this basis, Morgan Stanley expects Google to sell 0.3 GW of TPU systems in 2H 2026, 3.2 GW in 2027, and 4.2 GW in 2028, translating to $84 billion and $108 billion of TPU-related Google Cloud revenue in 2027 and 2028, respectively, and a potential $200 billion TPU revenue stream over the next few years.
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