2 Stocks to Buy as Google Starts Selling Its AI Chips

GOOG began selling its custom AI chips—Tensor Processing Units (TPUs)—to customers in Q2, marking the first time the company has commercialized the hardware it previously used only internally. The move creates a new revenue stream for Alphabet's Cloud business, which has already posted strong profitability gains.

AVGO manufactures the TPUs and stands to benefit from every deployment scenario, whether customers run the chips in Google's cloud or on-premises. The chipmaker reported 221% year-over-year AI semiconductor revenue growth, underscoring surging demand for AI infrastructure components.

The TPU launch puts GOOG in direct competition with Nvidia's dominant GPU offerings, but targets workloads optimized for Google's TensorFlow framework and customers already embedded in the company's cloud ecosystem. AVGO's role as the sole supplier positions it to capture margin on both Google's internal data-center buildout and third-party TPU sales.

Both stocks offer exposure to the AI infrastructure build-out from different angles—GOOG through recurring cloud services and AVGO through semiconductor supply.