Alphabet Confident its Semiconductors are a Gold Mine

Alphabet investors are increasingly confident that the company’s semiconductor efforts could become a major revenue engine for Google’s parent.

Optimism is rising that Alphabet may eventually sell the chips to external customers. (Photo: Google) 

The success of Alphabet’s Tensor Processing Unit (TPU) chips is a key factor behind the stock’s 30% fourth-quarter surge, placing it among the top performers in the S&P 500 Index, Bloomberg News reported.

TPUs have long been considered a core strength internally, driving growth in the company’s cloud-computing division.

But optimism is rising that Alphabet may eventually sell the chips to external customers, opening a new revenue stream in a sector that could ultimately be worth nearly $1 trillion.

Jane Street Group’s record haul this year underscores the momentum behind AI-driven investments.

The market-making firm told investors that stakes in private AI companies and funds lifted its third-quarter trading revenue by about $830 million.

Anthropic — whose valuation has soared throughout 2025 — accounted for the vast majority of those gains, representing about 12% of Jane Street’s $6.83 billion total.

The 25-year-old firm is now on track for its best year ever, surpassing many long-established Wall Street competitors.