Evercore raises Alphabet estimates on potential TPU hardware sales
Evercore ISI raised its Alphabet revenue estimates, projecting $75B in 2027 and $113B in 2028 from TPU hardware sales. The firm increased its price target to $450, representing a 30% upside. Alphabet began recognizing TPU revenue in Q2, with most coming in 2027. Evercore also raised its Google Cloud revenue estimate to $213B for 2027. Risks include competition and regulatory scrutiny.
How this was made
The 30-second read
Why it matters
The upgrade and higher targets may attract buying interest, especially in AI‑focused funds.
Market read
Analyst upgrade with strong AI‑chip revenue assumptions could drive short‑term buying in Alphabet.
What to watch
Regulatory scrutiny and potential pricing pressure from rivals could temper upside.
Background
Evercore ISI reiterated its Outperform rating on Alphabet, citing projected TPU hardware sales and raising its 2027‑2028 revenue forecasts.
Ticker impact
Evercore raised Alphabet's price target to $450 and forecast $75B‑$113B TPU sales, indicating a bullish outlook.
likely upward pressure as investors price in higher AI‑chip revenue.
The new target reflects a 30% upside from current price and substantial growth assumptions for TPU hardware.
Market effects
Higher AI‑chip revenue expectations could lift other cloud and semiconductor stocks.
U.S. tech sector may see modest gains.
AI hardware outlook influences global AI investment sentiment.
Counterpoint
Risks from talent shortage and competition may limit TPU adoption.
Key entities
- companyAlphabet
Parent of Google, developer of TPU AI chips.
- analystEvercore ISI
Equity research firm providing the upgrade.
