JPMorgan Raises Alphabet Price Target to $425, Implying 24% Upside
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JPMorgan lifted its Alphabet price target to $425 — implying 24% upside — on a sharp upgrade to Google Cloud's growth forecast from 88% to 100%. This means → Wall Street is betting that AI chip demand is already turning into real revenue.
Why is JPMorgan doubling down on Alphabet now?
Analyst Doug Anmuth raised his Q3 Google Cloud revenue growth estimate from 88% to 100%, pushing the price target from $420 to $425.
The key driver: demand for Google's Tensor Processing Units — TPUs, its in-house AI chips used to run data centers and large language models — is far outpacing expectations.
Anmuth himself conceded "our estimates may still prove conservative." This means → he believes actual TPU demand could run even hotter than a 100% growth rate.
100% cloud growth — how dramatic is that number?
Jumping from 88% to 100% is not a tweak; it is a major re-rating. In plain terms = JPMorgan expects Google Cloud revenue to double this quarter.
The surge comes largely from TPU sales now being counted inside cloud revenue — this reflects AI chips shifting from "R&D cost" to "sellable product."
Anmuth also lifted his 2027 EPS forecast by 3% to $14.05, signaling he sees this as a sustained trend, not a one-off spike.
So why didn't the stock rally?
Alphabet shares actually dipped 0.2% on the day — a clear disconnect from JPMorgan's bullish call.
The backdrop: AI trades are cooling broadly, and hotter-than-expected inflation data has revived rate-hike fears, pressuring the entire tech sector.
This means → the market's stance right now is "show us the numbers." Alphabet reports Q3 earnings on October 28. Whether Google Cloud actually delivers 100% growth will be a direct test of the biggest question hanging over Big Tech: can massive AI capital spending convert into real revenue?
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