Alphabet (GOOG) (GOOGL) has released Gemini 4 Argon, achieving major upgrades in programming, cybersecurity, and professional tasks, and is rolling it out to trusted partners in phases. At the same time, TSMC’s advanced AI chip capacity is sold out through the first half of 2028, highlighting persistently strong AI demand. Alphabet is both a chip buyer and a supplier, and TPU (Tensor Processing Unit) has already begun contributing revenue, while its current valuation remains attractive relative to earnings growth.
Alphabet officially released Gemini 4 Argon on Wednesday, its most advanced artificial intelligence model to date, achieving major upgrades in programming, cybersecurity, and complex professional work. The company said the model set a record in real-world software engineering tests, tied for first place in cybersecurity benchmark tests, and ranked first in another benchmark measuring performance in finance, law, and other professional tasks.
Google said Argon has already been used internally to optimize data center memory, freeing up hundreds of terabytes of memory without additional hardware purchases. Quantum computing researchers have also used the model. Google plans to launch the new model in phases, first targeting trusted cybersecurity partners, while working with the U.S. government on pre-release security assessments.
Tulsee Doshi, Google’s product lead for the Gemini model, said that launching the rollout in this way gives the company more confidence and enables it to quickly place a trained model with strong cyber defense capabilities into the hands of defenders. The release came one day after Google Chief Executive Officer Sundar Pichai signed a voluntary agreement with U.S. President Donald Trump and major technology executives at the White House. Earlier, the parties held a luncheon to discuss rising AI safety concerns.
Alphabet’s stock rose 2.8 percent as of 11:20 a.m. Eastern Time on Wednesday, as Piper Sandler gave an optimistic forecast for the artificial intelligence industry. Facts have proven that TSMC (TSM), which manufactures advanced AI semiconductor chips for Alphabet, has now sold out all of its capacity through the first half of 2028.
For Alphabet, the first implication of this observation is that the artificial intelligence revolution is unlikely to slow down in the short term. AI hyperscalers are still snapping up AI chips and memory chips in large quantities, even purchasing ahead of time to ensure future supply. Given that Alphabet is one of the largest hyperscalers, this indicates that Alphabet’s AI business is also continuing to thrive. In addition, there is a second implication that semiconductor industry investors need to pay attention to. Alphabet is not just an AI chip buyer; with the production of its TPU chips, it has also become an AI chip supplier. These chips, designed by Google but manufactured by TSMC, began generating revenue for Alphabet last quarter. Piper estimates that GPU and ASIC sales, including Google’s TPU, will total 14 million units this year, grow 50 percent in 2027, and grow another 40 percent in 2028. Among them, ASIC in particular will account for 66 percent of these shipments.
Alphabet’s current market capitalization is as high as an eye-popping $4.1 trillion, but with more than $244.2 billion in trailing twelve-month earnings, the tech giant’s price-to-earnings ratio is still only 16.8 times. For a company whose earnings are widely expected by most analysts to grow 14.6 percent annually over the next five years, this price is not high. Combined with today’s good news, Alphabet’s outlook indeed looks very strong.
