1. Alphabet's AI chip business may be its most valuable asset. 2. Analysts believe TPU and DeepMind could be worth over $700 billion. 3. Current market value of Alphabet is about $2.5 trillion. 4. Recent positive articles contributed to a 21% gain in Alphabet's stock.
The potential high value of TPU and DeepMind is not fully reflected in GOOGL's price, indicating growth potential. Past tech advancements have led to significant stock price increases in firms like NVDA.
The valuation of AI and chip businesses could significantly influence GOOGL’s future price, aligning with current market interest in AI capabilities.
The implications of AI advancements will take time to materialize, akin to how cloud computing's benefits took years to be realized for companies like Amazon.