Google Set to Move Higher After Multi-Billion Dollar AI Update
There's more evidence of rising AI demand lifting multiple chip boats.
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Our shares of Alphabet (GOOGL) are poised to move higher on Friday morning following a hefty deal worth “tens of billions of dollars.”
We’re referring to Google supplying up to 1 million AI chips to Anthropic starting next year. While Anthropic, the company behind the Claude AI chatbot, reiterated its commitment to Amazon (AMZN) , we see this move with Google speaking to the capacity-constrained AI and data center market, as well as prudently diversifying its exposure.
Supporting our view about constrained capacity, alongside this announcement, Anthropic shared that it now has more than 300,000 business customers, and the number of accounts that spend more than $100,000 in run-rate revenue has grown nearly seven times in 2025. To that, we can add the earnings call learnings we shared with you on Thursday from SAP SE (SAP) and IBM (IBM) . While we won’t go counting our chickens just yet, odds are we will be hearing more of the same as more companies report, including ServiceNow (NOW) next week.
Connecting the Chip Dots
When we see that chip win for Google, we have to remember that Google itself is not in the chip business and it is working with others, including Marvell (MRVL) , for custom AI chips and other data center components.
Yes, Anthropic is also getting AI chipsets from Amazon, another positive for our MRVL shares, and Broadcom (AVGO) . But as we see it, the nature of the Google-Anthropic announcement speaks to the “rising tide lifts all boats” and arms race nature of capacity that we’ve been talking about when it comes to AI and data center chip suppliers.
Keep in mind, the Anthropic-Google news is not the only high-profile AI chip announcement we’ve seen. It follows a number of data center announcements and the flurry of deals by OpenAI to secure chips and computing capacity from Nvidia (NVDA) , AMD (AMD) , Broadcom, Oracle (ORCL) and Google, estimated to be worth about $1.5 trillion.
While that figure points to big potential, it’s also one that has us keeping a close eye on AI adoption and usage rates. We’ll be matching those figures against capital spending comments from Meta (META) , Amazon, Google and Microsoft (MSFT) when they report next week. What we learn could very well push back on AI bubble concerns.
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At the time of publication, TheStreet Pro Portfolio was long GOOGL, AMZN, NOW, MRVL, NVDA, META and MSFT.
