Google literally makes its own CPUs (Axion), not just TPUs. Why is $GOOGL not mooning like Intel/AMD on “CPU for AI” trend?
u/mojolakota ·
Reddit — r/stocks
· April 25, 2026 at 17:06
· ⬆ 113 pts
· 💬 48 comments
| View on Reddit ↗
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Summary
The author argues that Google’s custom Axion CPU and TPU make it a vertically integrated AI infrastructure leader, yet the market is rewarding Intel/AMD instead.
Thesis: GOOGL is undervalued because its internal chip manufacturing reduces costs and improves margins, while the “CPU for AI” trend benefits Google’s cloud operations.
Quality assessment: Speculative but reasoned DD – lacks hard financial data but presents a logical competitive advantage thesis.
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Market finally figured out that CPUs are just as important as GPU and TPu for AI because thats where the actual code execution happens. You need the CPU for the logic, fetching data, and running cron jobs while the TPU or GPU just handles the math. Intel and AMD are ripping because people realized you cant run "agentic" AI without a massive amount of traditional CPU power to manage the workflow..
The thing is Google literally built its own custom CPU called Axion specifically to stop paying the "Intel tax" for its cloud, any TPU to stop paying “Nvidia tax” . Everyone knows Google has the TPU for training and inference, but they are also becoming a powerhouse in the CPU space for the orchestration side. They are basically the most vertically integrated company in the world right now
It’s weird that the market treats Intel and AMD like the only winners in the CPU space. Google is using its own hardware to power Youtube and their massive data centers, which should be huge for their margins. If the "AI era" requires better CPUs for execution, Google is already years ahead of most companies by designing their own ARM based chips in house.
Is the stock lagging just because they don't sell the chips to other people? It feels like investors are rewarding the companies that sell the hardware but ignoring the company that is actually using it to dominate the cloud. What am i missing here or is Google just the most undervalued hardware play since they don't have to buy from the other guys anymore.
Google designs its own Axion CPUs and TPUs, cutting dependency on Intel and Nvidia, and is using them at scale in YouTube and data centers. If the market realizes CPUs are critical for AI orchestration, Google’s vertical integration should boost margins and cloud competitiveness, rewarding the stock. GOOGL may reprice higher as investors recognize its internal hardware advantage, even without selling chips externally. Google doesn’t sell chips to third parties, so direct revenue from Axion is absent; market focus on external chip sellers may persist; competitive pressure from AMD/Intel and cloud rivals. No other actionable trade ideas in this post.
This Reddit post, published April 25, 2026,
features u/mojolakota
discussing GOOGL.
1 trade idea extracted by AI with direction and confidence scoring.