Quick Read – GOOGL’s Cloud surged 63% to $20B with a $462B backlog while TSM’s packaging capacity stays critically constrained despite 66% gross margins. – Alphabet is pulling packaging decisions in-house by delivering TPUs directly to customer data centers, threatening to…
direct volume from TSMC’s CoWoS bottleneck. – TSMC’s CapEx toward $56B in 2026 and rising further over three years exposes it to margin dilution that Alphabet’s vertical TPU stack sidesteps. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn’t make the cut. Grab the names FREE today
Alphabet (NASDAQ:GOOGL) and Taiwan Semiconductor (NYSE:TSM) delivered blockbuster Q1 2026 reports exposing different paths to AI silicon profit. One scales custom TPU volume and pulls packaging leverage in-house. The other races to build advanced capacity for the entire industry.
The results clarify who captures operating leverage and who absorbs the CapEx. TPUs Carry Alphabet. HPC Carries TSMC.