Google Cloud Next 2026 Approaching. Which Companies Are Likely to Benefit from Next Generation TPU?

Recently, $Alphabet-C (GOOG.US)$ 's ecosystem has returned to the market spotlight, catalyzed by Anthropic's computing power agreement with Google and Broadcom, as well as Google's two major upcoming conferences.

After Google's stock price pulled back from February highs, it has quietly begun a new round of recovery alongside cooling macroeconomic and geopolitical risks.

Key Google Developments to Monitor

Massive Computing Power Order Confirmed: According to $Broadcom (AVGO.US)$ 's disclosure, AI unicorn Anthropic has signed a new agreement with Google and Broadcom, securing up to 3.5 GW of next-generation TPU computing power.

Major Conferences Preview, New Architecture Imminent: Google Cloud Next '26 will be held April 22-24 in Las Vegas, Nevada, focusing on enterprise AI, cloud innovation, and agent-based AI. The new generation TPU architecture may debut at the conference, showcasing the new OCS configuration ratios and product roadmap. This will be followed by Google I/O 2026 developers conference in May, which is expected to further reveal the latest breakthroughs in Gemini and other large models. These two summit events will not only establish Google's new technology roadmap but also open a critical window for expanding complementary hardware opportunities.

Capacity Guidance Significantly Increased: According to market sources, the total expected TPU shipments for 2026-2028 have been dramatically increased to 50 million units, with 4.3 million units in 2026, an increase from 6.5 million to 10 million units in 2027, and an increase to over 35 million units in 2028.

Which Companies Are Worth Watching?

With the significant increase in TPU shipment expectations, the underlying AI infrastructure supply chain will benefit deeply.

Due to the specific ratio relationship between TPU clusters and network components such as optical circuit switches (OCS), the expansion of cluster scale will exponentially drive demand for high-speed interconnect hardware. Based on industry development trends, this TPU capacity increase will primarily impact optical modules, liquid cooling, OCS, MPO and AOC, server power supplies, and other areas.

1. Optical Modules and High-Speed Interconnect Chips

In computing network expansion, TPUs and optical modules have a rigid ratio of 1:2.5 to 1:3. As overall computing density continues to break through, optical modules are rapidly evolving from 800G to 1.6T, with 1.6T contributing the vast majority of new demand and driving upstream DSP and analog chip requirements.

– Optical module manufacturers and components: $Coherent (COHR.US)$ $Lumentum (LITE.US)$ $Applied Optoelectronics (AAOI.US)$

– DSP and high-speed interconnect chips: $Marvell Technology (MRVL.US)$ $Credo Technology (CRDO.US)$

– Analog optoelectronic chips: $MACOM Technology Solutions (MTSI.US)$ $Semtech (SMTC.US)$

– Precision manufacturing and assembly: $Fabrinet (FN.US)$

2. OCS All-Optical Switches

According to CignalAI data, the overall OCS market size led by Google will be approximately $400 million in 2025. Driven by Google's continuously increasing AI computing power demands, the OCS market size is expected to exceed $2.5 billion by 2029, with a compound annual growth rate (CAGR) of 58%. The upcoming industry conferences may further establish OCS technology ratios, opening up long-term growth space for this segment.

– Optoelectronic components: $Coherent (COHR.US)$, which has reported over 10 customers for OCS and growing backlog orders. Management believes their previous estimate of the OCS market size (about $2 billion in the next few years) may be too conservative.

– MEMS micromirrors: $Lumentum (LITE.US)$ , which is rapidly expanding OCS capacity to meet "extraordinary customer demand" with a backlog exceeding $400 million. Management expects OCS shipment volume to grow at a compound annual rate exceeding 150% between 2025-2028, targeting over $1 billion in annualized revenue by 2027.

– Assembly and manufacturing: $Fabrinet (FN.US)$

3. PCB

The significant increase in TPU capacity expectations represents a dual logic of both volume and price growth for the PCB industry. Next-generation TPUs (such as TPUv7, TPUv8) have more complex architectures and higher PCB performance requirements.

$TTM Technologies (TTMI.US)$ , as one of the largest PCB manufacturers in the U.S., holds a leading position in global high-frequency, high-speed, reliable PCB fields. In the current macro environment where North American tech giants increasingly value supply chain localization and security, TTM has a strong "identity advantage" and order share certainty.

4. Liquid Cooling

In the current revaluation of the liquid cooling sector, Google TPU volume is the most decisive catalyst. Technologically, TPU v7 and subsequent generations fully embrace liquid cooling, essentially announcing that the ASIC computing ecosystem has completely transitioned to liquid cooling. Industry penetration is officially moving from "phased improvement" to "structural explosion." Relevant companies include:

$Vertiv Holdings (VRT.US)$ - A key partner of NVIDIA and other core GPU/ASIC manufacturers, deeply involved in setting cooling standards for next-generation ultra-high-power cabinets.

$Modine Manufacturing (MOD.US)$ - Provides large cooling equipment such as chillers, cooling towers, and indoor precision thermal management equipment.

$nVent Electric (NVT.US)$ - A global leader in electrical connection and protection solutions, focusing on critical physical components like high-density cabinets for liquid-cooled servers, cooling distribution units (CDUs), manifolds, and leak-proof quick connectors.

5. Server Power Supplies

Google's server racks growth will directly drive demand for high-power server power supplies. Investors can watch:

$Monolithic Power Systems (MPWR.US)$ - The leader in global high-performance power management chips.

$Vicor (VICR.US)$ - Currently the only company that has commercialized 48V direct-to-PoL load technology, providing 48V data center power solutions to Google for multiple years.

$Advanced Energy Industries (AEIS.US)$ - A leader in rack-mounted power supplies and front-end AC-DC conversion equipment.

6. MPO and AOC

The relationship between MPO and optical modules is approximately 1:2, meaning more optical modules theoretically drive more MPO demand. Investors can watch $Amphenol (APH.US)$ and $TE Connectivity (TEL.US)$ .

Additionally, fiber companies like $Corning (GLW.US)$ are worth watching. Institutions report that Google has formally placed an order for 12 million NPO optical modules for next-generation TPU cluster construction, marking the substantial launch of "fiber to cabinet."

7. Other Key Areas: Chip Design, Manufacturing, etc.

– ASIC chip design and IP: $Broadcom (AVGO.US)$ is the most important co-developer behind Google's TPU project.

– Wafer manufacturing and advanced packaging: Google TPUs rely on $Taiwan Semiconductor (TSM.US)$ for manufacturing.

– Semiconductor test probes: $FormFactor (FORM.US)$ is a global leader in advanced probe cards for semiconductor wafer testing.

$Celestica (CLS.US)$ - A top-tier EMS provider focused on enterprise network communications and cloud infrastructure.

$Jabil (JBL.US)$ - A global integrated manufacturing services giant.

$Flex Ltd (FLEX.US)$ - A global leader in supply chain and manufacturing solutions.

– System assembly and EMS manufacturing:

Investors should closely monitor the upcoming Google Cloud Next and Google I/O technology summits, which will be key catalytic windows for verifying next-generation technology ratios and observing supply chain order implementation rhythms. In this era where "computing power equals power," the certainty of underlying infrastructure prosperity remains extremely high.

While capturing the benefits of industry expansion, investors should also closely monitor potential risks such as AI capital expenditure falling short of expectations, technology iteration and expansion progress lagging, geopolitical issues and supply chain disruptions, and sector valuation pullbacks from high levels.

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