Analysts Lift Alphabet Targets on TPU Chip Sales and Fitbit Launch
Wall Street analysts are increasing price targets for Alphabet, citing strong potential for external sales of its TPU AI chips and new hardware launches. Evercore projects significant revenue growth from these chips, while J.P. Morgan highlights broader bullish sentiment. The stock has seen recent momentum driven by these factors and a new Fitbit device.
Key points
- Evercore ISI reiterated an Outperform rating with a $450 price target, projecting $75 billion in TPU chip revenue for 2027 and $113 billion for 2028.
- J.P. Morgan analyst Doug Anmuth maintained a Buy rating and raised his price target to $425, noting a recent stock close of $343.65.
- The broader analyst consensus remains bullish, with an average price target of approximately $432.56, implying roughly 23% upside.
- Alphabet launched the $180 Fitbit Edge, a mid-range fitness tracker featuring improved GPS and integration with Google Health AI subscriptions.
- Evercore's price target represents approximately 30% upside from recent levels, driven by AI chip sales and Google Cloud growth.
Background
Recent market coverage has highlighted mixed performance across major tech and consumer sectors, with some companies facing cost pressures while others see strong demand. Alphabet's recent moves align with a broader trend of tech firms leveraging AI and hardware innovations to drive revenue growth, contrasting with sectors facing tariff and input cost challenges.
How outlets are covering it
Evercore emphasizes the financial impact of external TPU chip sales, projecting substantial revenue growth, while J.P. Morgan focuses on the overall bullish consensus and product momentum, including the new Fitbit Edge. Both outlets agree on the positive outlook but highlight different drivers: Evercore on AI hardware revenue and J.P. Morgan on broader analyst sentiment and consumer tech launches.
Why it matters
The rising price targets and analyst confidence in Alphabet's AI chip sales and new hardware products signal strong market optimism for the company's growth in AI and consumer tech, potentially influencing broader tech sector trends and investor sentiment.
What to watch
Investors will monitor Alphabet's upcoming earnings and product launches, particularly the performance of the Fitbit Edge and TPU chip sales, to assess the validity of the analysts' projections and the company's ability to meet revenue targets.
- Evercore raises Alphabet estimates on potential TPU hardware sales (GOOG:NASDAQ) Seeking Alpha
- 1 Analyst Thinks Alphabet Stock Could Jump 20% on AI Chip Demand. Is He Right? The Motley Fool
- Alphabet Stock Can Soar 22%, J.P. Morgan Says. Why Google Can Defy AI Fears. Barron's
- How AI Chips Will Power Google Cloud Revenue In 2027 And Beyond Investor's Business Daily
- Alphabet Class C Surges on Bullish Calls and New Fitbit TipRanks
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