Hua Er Jie Jian Wen·2025-11-25 09:53Core Viewpoint - The market has long underestimated Google's "full-stack" AI capabilities, which are self-sufficient from chip development (TPU v7p) to model creation (Gemini 3.0) and application deployment (search + Waymo) [1] Group 1: AI Ecosystem and Financial Performance - Google's self-sufficient AI ecosystem is translating into tangible financial returns, with TPU deployment significantly reducing inference costs and stabilizing search market share above 90% [1][5] - The robust advertising cash flow supports high capital expenditures, enabling further investment in AI [1][8] - The cloud business is experiencing growth driven by Google's proprietary TPU and software ecosystem, with cloud revenue reaching $15.2 billion in Q3, a 34% year-over-year increase [3] Group 2: Competitive Positioning - TPU v7p, with an FP8 computing power of 4.5 PF, directly competes with Nvidia's B300 chip, showcasing Google's technological advancements [2] - Unlike competitors relying on external computing resources, Google has been deploying TPU since 2016, now expanding to third-party cloud services [2] Group 3: Search and Advertising Business - Google's search market share has rebounded to over 90%, with the Gemini 3.0 model enhancing user engagement and advertising capabilities [5][9] - Gemini's monthly active users have reached 650 million, and its integration with Chrome is expected to drive further user traffic [5] Group 4: Broader AI Initiatives - Google's AI initiatives extend beyond core services, with Waymo operating over 2,500 autonomous vehicles and achieving over 300,000 orders per week [9] - The AlphaFold project is making significant strides in protein structure prediction, impacting AI drug development [9] Group 5: Revenue Projections - Based on the comprehensive ecosystem, revenue forecasts for Google have been raised, with expected revenue of approximately $405.2 billion in 2025 and net profit projections of $131.5 billion [9]