[Morgan Stanley Raises Google TPU Revenue Forecast, Maintains Overweight Rating on Alphabet] Morgan Stanley has raised its assumption for Google's TPU external sales revenue per GW from $20 billion to $27 billion, with the gross margin increased from 20% to 30%. After the adjustment, TPU-related cloud revenue is expected to reach $84 billion in 2027 and $108 billion in 2028. Morgan Stanley maintains its overweight rating on Alphabet with a target price of $400. Google has committed to supplying approximately 1 million TPUs, corresponding to about $35 billion in revenue. Google's custom chip agreement with Marvell supports TPU pricing. Morgan Stanley estimates that Google Cloud will account for approximately 50% of Alphabet's overall EBIT by 2028.