Evercore raises Alphabet estimates on potential TPU hardware sales (GOOG:NASDAQ)
Evercore raised its Alphabet forecasts, pointing to potential sales of Google in-house Tensor Processing Units as a major catalyst. According to Evercore, these proprietary AI hardware components could evolve into a significant Google Cloud revenue driver. The firm projects that TPU sales could account for as much as thirty five percent of total cloud revenue by the year twenty twenty seven. Meanwhile, Alphabet shares have experienced mixed market reactions, recently trading down despite broader bullish calls from various financial analysts regarding artificial intelligence chip demand and cloud growth potential.
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- ✓ Evercore raised its Alphabet forecasts due to potential sales of Google in-house Tensor Processing Units.
- ✓ Evercore projected that TPU sales could represent as much as 35 percent of Google Cloud revenue in 2027.
- ✓ Alphabet shares traded down 2.3 percent on Friday, hitting a low of $335.50.
What changed
Evercore elevated its financial estimates for Alphabet based on the projected commercial impact of custom TPU hardware sales.
Live updates
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Evercore Raises Alphabet Estimates On Potential TPU Sales
Evercore raised its Alphabet forecasts, pointing to potential sales of Google in-house Tensor Processing Units as a major catalyst. According to Evercore, these proprietary AI hardware components could evolve into a significant Google Cloud revenue driver. The firm projects that TPU sales could account for as much as thirty five percent of total cloud revenue by the year twenty twenty seven. Meanwhile, Alphabet shares have experienced mixed market reactions, recently trading down despite broader bullish calls from various financial analysts regarding artificial intelligence chip demand and cloud growth potential.
Why it matters
The upward revision highlights growing Wall Street focus on proprietary semiconductor hardware as a differentiator for major cloud computing providers. Google has developed its own custom Tensor Processing Units to power demanding artificial intelligence workloads outside of traditional merchant silicon. Analysts are increasingly evaluating how these custom chips might impact profit margins and enterprise adoption trajectories for Google Cloud relative to competing hyperscalers.
What is confirmed
- Evercore raised its Alphabet forecasts due to potential sales of Google in-house Tensor Processing Units.
- Evercore projected that TPU sales could represent as much as 35 percent of Google Cloud revenue in 2027.
- Alphabet shares traded down 2.3 percent on Friday, hitting a low of $335.50.
Still unconfirmed
- Alphabet stock could jump 20 percent on artificial intelligence chip demand, according to one analyst.
What to watch next
- Actual reported revenue figures for Google Cloud incorporating TPU hardware sales
- Subsequent analyst revisions regarding artificial intelligence chip demand and stock valuation targets
confidence 90%Sources used for this update (9)
- seekingalpha.com — Patient Capital Management Q3 2026 Commentary
- Seeking Alpha — Evercore raises Alphabet estimates on potential TPU hardware sales (GOOG:NASDAQ)
- The Motley Fool — 1 Analyst Thinks Alphabet Stock Could Jump 20% on AI Chip Demand. Is He Right?
- Barron's — Alphabet Stock Can Soar 22%, J.P. Morgan Says. Why Google Can Defy AI Fears.
- Investor's Business Daily — How AI Chips Will Power Google Cloud Revenue In 2027 And Beyond
- TipRanks — Alphabet Class C Surges on Bullish Calls and New Fitbit
- finance.yahoo.com — Alphabet Stocks Fall Although AI-Chip Forecast Signals a ...
- sentiment-trading.com — Evercore ISI Raises Targets on Travelers, Alphabet, and ...
- www.marketbeat.com — Alphabet (NASDAQ:GOOG) Stock Falls 2.3% - Should You Sell?
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