Industry forecasts project Google TPU shipments will triple to 8.8 million units by 2027.

GF Securities projects that Google’s custom AI-chip shipments will more than triple as Alphabet expands its cloud and data-center infrastructure. According to a brokerage forecast published by 24/7 Wall St. and carried by Yahoo Finance, Google’s Tensor Processing Unit (TPU) shipments are expected to rise from 2.76 million units in 2024 to 8.84 million by 2027. The interim projections call for 2.854 million units in 2025 and 4.504 million in 2026 before the projected surge in 2027.

New TPU generations are anticipated to deliver improved performance per watt while expanding capacity for both AI training and inference workloads. Financially, Alphabet began recognizing revenue from TPU systems delivered to customer data centers in the second quarter of 2026, with the majority of revenue from these agreements expected to materialize in 2027. Supporting this growth, Google Cloud’s backlog has reached $514 billion, and its Gemini models are currently processing 22 billion API tokens per minute.

This infrastructure expansion is reflected in Alphabet’s aggressive capital expenditure strategy. Second-quarter capital spending reached $44.9 billion, representing an approximate 100% year-over-year increase. Chief Executive Officer Sundar Pichai said 2026 capital spending is expected to reach $175 billion to $185 billion.