Evercore Projects Alphabet's External TPU Chip Sales to Hit $75 Billion by 2027

Alphabet ($GOOGL) is emerging as a formidable infrastructure alternative to Nvidia ($NVDA), with Evercore ISI projecting sales of Google's Tensor Processing Units (TPUs) to outside customers could reach $75 billion in 2027 and $113 billion in 2028. Evercore analyst Georgia Anderson estimates that TPU hardware sales could account for roughly 35% of Google Cloud revenue by 2027, maintaining an Outperform rating with a $450 price target.
Originally engineered over a decade ago as an internal cost-reduction measure, Google is commercializing its TPU silicon across multiple deployment channels. Customers can now rent chips via Google Cloud, utilize infrastructure joint ventures like Blackstone's 500-megawatt deployment, or deploy TPU hardware directly inside their on-premise data centers. Anthropic has already expanded its multi-gigawatt TPU commitment slated to come online in 2027 through Google Cloud and Broadcom-supplied silicon.
Wall Street estimates for external TPU hardware continue to rise across the board:
• Piper Sandler projects external TPU hardware revenue to scale from $8 billion in 2026 to $51 billion in 2027 and $104 billion in 2028.
• BMO lifted its 2027 Google Cloud revenue target to $189 billion, citing accelerating cloud momentum and semiconductor expansion.
• Evercore checks indicate that full-stack TPU integration can deliver 20% to 40% cost reductions for qualified engineering teams compared to general-purpose GPUs.