Key insights
- The author believes Google Cloud's vertically integrated approach (TPUs, Axion CPUs, data advantage) gives it a competitive edge in the hyperscaler market. They are considering whether to increase their position in GOOGL or diversify into other mega-cap tech stocks. This suggests potential continued strength in Google relative to peers, with positive implications for GOOGL's stock price.
Looking at the recent post-earnings action, Meta, Microsoft, and Amazon are taking a hit, while Google is absolutely ripping. Iām definitely not complainin. my only individual stock holdings are $GOOGL and $NVDA, with the rest of my portfolio in broad index funds
Right now, it feels like Google is winning massively while the other hyperscalers are lagging behind. This price action got me thinking about the broader cloud and AI infrastructure space.
Does Google have some unique edge that can turn hyperscalers turning into a winner take most market if not winner take all?
The thing that stands out to me is that Google Cloud isn't just a landlord renting out Nvidia GPUs. They actually own the whole stack. Between their massive head start on custom silicon (TPUs and the new Axion CPUs) and their own endless data firehose (Search, YouTube, DeepMind), GCP seems to have a serious cost and compute advantage. Add in Waymo scaling on their servers, the heavy investments keeping Anthropic locked into GCP, and their SpaceX cloud deals, and it feels like a structural edge that AWS and Azure will struggle to replicate?
Given this momentum, should I double down and buy more $GOOGL, or is now the time to diversify into the other mega-caps while they are seeing red?
Thoughts? š