Alphabet Stock Investors Need to Know This | GOOG Stock Deep Dive Part 4

Parkev Tatevosian, CFA•Jul 29, 2026

Summary

Parkev highlights the transformation of Alphabet from an advertising-dominant company to a multi-faceted tech giant with booming cloud and hardware divisions. Parkev emphasizes that the proliferation of proprietary chips and the scaling of the cloud segment are fundamentally changing the company's financial profile.

Alphabet (GOOGL): Parkev explains that Alphabet's proprietary TPU chips are now being sold to third-party customers, creating a new revenue segment that could reach a $20 billion annual run rate, comparable to Amazon’s chip business. Parkev notes that Google Cloud's operating profit margins have surged to 35.6%, with a massive $514 billion backlog that is expected to result in approximately $100 billion in revenue over the next year and $150 billion the following year. Additionally, Parkev projects that Waymo could generate tens of billions in revenue within the next five years as autonomous driving technology scales.

NVIDIA (NVDA): Parkev acknowledges Nvidia as the current leader in the accelerated computing space, particularly for customers who require the most innovative technology regardless of cost. Parkev describes Nvidia's products as a "no-brainer" for high-end needs but points out that Alphabet is successfully positioning its TPUs as a more cost-effective alternative for price-sensitive businesses.

Parkev mentions that while TPU revenue will be modest this year, a significant acceleration is expected by 2027 due to high demand and manufacturing timelines.

Mentioned Stocks

NVDA

Sentiment: BUY

Reasoning: Parkev refers to Nvidia as the best-in-class provider of accelerated computing chips and states that for customers where cost is not a concern, choosing Nvidia is a 'no-brainer'. While the video focuses on Alphabet as a competitor, Parkev affirms Nvidia's technological leadership and innovation.

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GOOGL

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev is highly optimistic about Alphabet's diversification beyond advertising, specifically citing the $514 billion Google Cloud backlog and the emerging TPU chip business. Parkev estimates that Alphabet will recognize roughly $250 billion of its backlog as revenue over the next 24 months ($100B in year one and $150B in year two). Parkev also sees massive potential in Waymo and expects the chip business to significantly accelerate by 2027 as it captures market share from more expensive competitors.

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