Omdia: Google's (GOOGL.US) TPU Chip Demand Accelerates, Challenging Nvidia's (NVDA.US) Dominance

Omdia reported that Broadcom CEO Hock Tan has repeatedly raised the revenue target for AI semiconductors. The company's target this year is US$12bn, based on which, according to the segmentation between computing and networking devices, it is estimated that Google's TPU may account for US$6bn-US$9bn (close to Omdia's existing estimate) and the rest should be composed of Meta's MTIA chips, with the mysterious third customer's project expected to start in 2025.

Omdia's chief analyst Alexander Harrowell noted that "while there is some uncertainty about the exact split between computing and networking devices, even at the lower US$6bn estimate, the growth in TPU shipments is fast enough to take a significant share from Nvidia for the first time. Notably, the share of Google's cloud business in Google's revenue has been growing and profitability has been improving, which may indicate that TPU accelerated instance types or AI products running on TPU are driving Google Cloud's growth, especially the high-profit accelerator."