Can Google's continuously expanding AI chip business drive the GOOGL stock price to continue rising, or will the recent rebound lose its momentum?

Google launches two new AI chips, challenging NVIDIA

Google has launched two new TPU versions – 8tx and 8i Max, further expanding its AI infrastructure products for enterprise customers. TPU 8tx is aimed at government agencies and regulated industries that require secure data processing. This chip combines Google's chip technology with AMD processors as well as hardware-level encryption, and Google claims that its speed can reach up to twice that of its predecessor products.

TPU 8i Max is aimed at memory-intensive AI applications, including programming assistants, mathematical reasoning, and drug discovery. Its architecture integrates two chips into one package to provide enhanced memory and computing power.

This announcement strengthens Google's efforts to compete with NVIDIA in the AI accelerator market. More importantly, Google is increasingly providing its custom chips through Google Cloud, rather than using them only for internal workloads.

Google Cloud's revenue in the third quarter of 2026 reached $30.71 billion, a year-on-year increase of 103%, with the TPU system sales pair making an important contribution to this growth.

GOOGL Can the stock price return to $300?

Alphabet The stock price is currently near $291.14, having rebounded from a sharp decline that saw it fall below the support range of $270 to $280.

However, the broader technical structure remains weak. The stock price of GOOGL is still below key moving averages, which are concentrated in the range of $325 to $335, indicating that a sustained bullish reversal has not yet been formed for this stock.

$300 is the current psychological barrier. If it can remain above this level, it may enhance the momentum for a rebound; however, the range of $270 to $280 remains an important support area. If it falls below this demand zone, Alphabet may face a new round of selling pressure.

Can Google's AI chip drive the next round of gains?

However, investors are still concerned about rising capital expenditures, cash flows, and competition in the AI search domain. Whether Google can convert its infrastructure investments into sustainable revenue and profitability will remain at the core of its valuation.