This article first appeared on GuruFocus.

Alphabet (NASDAQ:GOOGL) is stepping up production of its in-house Tensor Processing Units, or TPUs, a move Mizuho says is reshaping parts of the AI supply chain.

The brokerage raised its price target on Lumentum (NASDAQ:LITE) to $325 from $290, citing stronger demand for optical components tied to Google’s accelerator rollout.

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The call comes as Meta Platforms (NASDAQ:META) is reported to be in talks to spend billions on AI chips from Google’s hardware unit. Analysts say that interest from large cloud and social media groups signals growing adoption beyond Alphabet’s internal use.

Mizuho said TPU traction at AI lab Anthropic and discussions involving Amazon (AMZN) Web Services could also support Broadcom (NASDAQ:AVGO), which makes custom silicon and networking gear used in data centers.

Meta’s AI systems are still heavily reliant on graphics processors from Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), according to the note. A gradual shift toward TPUs would be a modest headwind for GPU vendors but a tailwind for Broadcom, the brokerage added.

Mizuho also flagged Micron Technology (MU) as a beneficiary through rising memory demand, while pointing to potential upside to its near-term earnings outlook.