Alphabet AI Search Drives Wall Street Target Hikes, Cloud Margins Still Draw Scrutiny
Google parent Alphabet has placed an order for over 3 million TPUs with Intel for 2028, The Information reported, as the company moves its AI chip game further in-house. Wall Street is watching to see if the AI ramp leads to margin pressure. Reuters said it couldn't verify the report. Piper Sandler hiked its Alphabet price target to $445 from $425 on strong gains from Google’s AI-driven search, but UBS flagged that moving Google Cloud’s TPU backlog into revenue faster could weigh on margins.