Alphabet Q2 Preview: The AWS Blueprint For TPUs

Alphabet's Q2 earnings may normalize after Q1 beat; investors eye in-house chips as hyperscalers monetize custom silicon. Click for this GOOGL stock update.

Summary - Alphabet's Q2 earnings will likely normalize after a massive Q1 beat, shifting investor focus toward its growing in-house semiconductor operations. - Hyperscalers are beginning to position their proprietary custom silicon segments as formidable standalone businesses to combat heavy cloud competition. - While massive capital expenditures create depreciation risks for GAAP earnings, this infrastructure buildout should ultimately spur lucrative proprietary chip sales.

- Following the recent sell-off, GOOG trades at an attractive forward PEG ratio near 1.0, supporting a conservative fair value estimate of $347. Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, GOOG, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions.

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The views expressed are solely those of the author, based on independent research, analysis, and professional experience. Although the