J.P. Morgan analyst says Alphabet stock could rise 23% on AI chip demand
Doug Anmuth, an analyst at J.P. Morgan, raised his price target for Alphabet to $425, roughly a 23% upside from the current price. He bases the optimism on Alphabet’s expanding sales of its custom Tensor Processing Units (TPUs) to other AI companies, which he believes could double Google Cloud revenue in the third quarter.
Key points
- Analyst Doug Anmuth raised Alphabet price target to $425, about 23% upside.
- Google Cloud Q2 sales rose 82% to $24.8 billion, driven by AI services.
- Piper Sandler estimates Alphabet’s TPU sales could hit $104 billion by 2028.
Google Cloud revenue jumped 82% to $24.8 billion in Q2 2026 as the division sold more AI services. Alphabet’s CEO Sundar Pichai said the company will start delivering TPUs to select customers’ data centers as demand grows from AI labs, capital‑market firms and high‑performance computing. TrendForce estimates custom‑processor sales will rise 45% over the next year, outpacing GPU growth of 16%. Piper Sandler’s Thomas Champion projects Alphabet’s TPU sales could reach $104 billion by 2028, compared with $120 billion total revenue in Q2. The company reported EPS of $9.11, a 294% year‑over‑year increase, while planning about $200 billion in AI infrastructure spending this year.
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1 Analyst Thinks Alphabet Stock Could Jump 20% on AI Chip Demand. Is He Right?
fool.com · 17 October 2026
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