Omdia: Alphabet Inc. Class C (GOOGL.US) TPU chip demand accelerates, challenging NVIDIA Corporation (NVDA.US) dominance.

Omdia wrote that Broadcom CEO Hock Tan has repeatedly raised the revenue target for AI semiconductor. The company's target for this year is $12 billion. Based on the segmentation between computing and networking equipment, it is estimated that Alphabet Inc. Class C's (GOOGL.US) TPU could account for between $6 billion (close to Omdia's current estimate) and $9 billion. The rest is expected to be made up of Meta's MTIA chips, with projects from a third mysterious customer projected to start in 2025. Omdia's Chief Analyst Alexander Harrowell noted: "Although there is still some uncertainty about the exact ratio between computing and networking equipment, even with a lower estimate of $6 billion, the growth rate of TPU shipments is enough to significantly gain market share from NVIDIA Corporation (NVDA.US) for the first time. It is worth noting that the share of Alphabet Inc. Class C's cloud platform business in Alphabet Inc. Class C's revenue continues to grow, while profitability is also improving. This may indicate that TPU accelerator instances or AI products running on TPUs are driving the growth of Alphabet Inc. Class C's cloud, especially high-profit products like accelerators."