J.P. Morgan raises Alphabet price target to $425, expects Google Cloud revenue to grow 100% in Q3 on TPU demand
What happened
J.P. Morgan analyst Doug Anmuth raised his price target for Alphabet to $425 from $420 on Thursday, implying roughly 22% upside from Wednesday's close of $347.64. He now expects Google Cloud revenue to grow 100% in Q3, up from an 88% estimate, driven by sky-high demand for Google's tensor processing units (TPUs), custom chips used in data centers and to run AI large-language models. Anmuth said TPU sale inclusion was the primary driver of the increase and that he 'could still be conservative,' and he raised his 2027 Alphabet earnings forecast by 3% to $14.05 a share. In the same note he lifted his Amazon growth estimate on the OpenAI partnership and modeled $10 billion of settlement expenses for Meta.
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Start your free 14-day trialWho’s affected
- Alphabet (GOOGL) — raised target implies about 22% upside from Wednesday's $347.64 close; Amazon (AMZN) — J.P. Morgan also raised its growth estimate, citing the scaling OpenAI partnership; Meta (META) — model tweaked to include $10 billion in expenses tied to the proposed settlement with 52 state attorneys general; Nvidia (NVDA) — Alphabet's custom TPU momentum is a competitive read-through for merchant AI-chip demand
Sources