- Alphabet introduces its new Arm-based Axion TPU to compete with Nvidia, Intel and AMD.
- The v5p chip will only be accessible through Google Cloud.
- GOOGL shares rise on the news, despite the market sell-off ahead of the March CPI.
- Technical data shows that Alphabet stock is likely to see a near-term reversal.
Alphabet (GOOGL)Google's parent company, announced on Tuesday its response to Nvidia (NVDA) with the release of an Arm-based central processing unit (CPU) aimed at accelerating artificial intelligence (AI) workloads in data centers.
The announcement positions Alphabet as a competitor to Nvidia, whose various chips, mostly GPUs, currently dominate the AI training market for large language models (LLM).
US markets fell mid-day, but rose in the final hour of the session. Traders are nervous ahead of the publication on Wednesday of the Consumer Price Index (CPI) for March. The Nasdaq and S&P 500 posted moderate gains, while the Dow Jones index fell slightly. Nvidia shares and arm Holdings (ARM ) lost about 2% each.
Alphabet News
Specifically, Alphabet presented its tensor processing unit (TPU) called Axion through Google Cloud or TPU v5p. The name comes from the fact that customers will only have access to the chip through Google's cloud platform.
Those responsible say that operating in clusters of 8,960 chips allows the technology to render AI workloads at twice the performance of previous versions of TPU.
“We're making it easier for customers to bring their existing workloads to Arm,” said Mark Lohmeyer, vice president and general manager of compute and machine learning infrastructure at Google Cloud. “Axion is built on open foundations, but customers using Arm anywhere can easily adopt Axion without needing to rearchitect or rewrite their applications.”
The company did not mention whether Broadcom (AVGO) had helped them design the new chip, as the latter company did with previous versions of TPU. So much Amazon (AMZN) as Microsoft (MSFT) They have previously designed their own CPUs to differentiate each of their cloud platforms.
Additionally, Google claimed that TPU v5p chips perform 30% better than standard Arm chips and 50% better than x86 architectures produced by Advanced Micro Devices (AMD) and Intel (INTC).
The social media company is expected Snap Be the first to start testing new technology on Google Cloud.
Forecast for Alphabet Stock: Technical data is bearish
GOOGL stock saw its light dim since the morning session on Tuesday, when the value soared about 2.4% to $158.56, an all-time high. With the outlook for the market dimming until March CPI data arrives on Wednesday, traders are on hold. If the CPI data is encouraging, expect GOOGL stock to return to the $153 support, which was a resistance zone in January.
More importantly, Alphabet's technical data is bearish. First of all, Tuesday's candlestick looks like a textbook shooting star. The chart pattern at the top of a ladder rally, which resembles an inverted hammer, usually indicates that a bearish reversal is coming.
Second, the rising trend line of higher highs (orange line) on the daily chart is inverse to the falling trend line (also orange) on the Relative Strength Index (RSI) over the same period since late January to early April. This RSI divergence pattern is also a sign of a bearish countertrend. The chart advises selling despite the day's news on the chip front.
GOOGL Daily Chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
