J.P. Morgan analyst Doug Anmuth raised his price target for Alphabet stock to $425, about 23% above the current price, betting that selling its custom TPU AI processors to other companies will accelerate cloud revenue. Google Cloud sales rose 82% to $24.8 billion in the second quarter of 2026, and Anmuth thinks cloud revenue could double in the third quarter. Piper Sandler's Thomas Champion estimates Google's processor sales could reach $104 billion by 2028, compared with Alphabet's total second-quarter revenue of $120 billion. Alphabet reported Q2 EPS of $9.11, up 294%, but some investors worry about its roughly $200 billion AI infrastructure spending this year. The stock trades at a trailing P/E of about 17, versus a tech sector average of 33.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLcloud computingAI investmentvaluationsemiconductors
Open a keyword to see other news on the same topic.
Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/16/2026 | 340.59 |
| Change that session | -2.47% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- If I Could Own Only 1 "Magnificent Seven" Stock for the Next 10 Years, It Would Be This One.
The article argues that the Magnificent Seven together account for more than one-third of the S&P 500's market capitalization, and the author would choose Alphabet as the single stock to own for the next decade. According to the piece, YouTube held a 14.2% share of U.S. daily TV viewing time in July per Nielsen, Waymo was completing 500,000 rides a week, and Google Search made up 53% of Alphabet's revenue. Google Cloud posted second-quarter revenue of $24.8 billion, up 82% year over year. However, Alphabet expects to spend about $200 billion on infrastructure at the midpoint of its plan, free cash flow turned negative in Q2, and the author says investors must be very patient.
- If I Could Only Buy 1 Artificial Intelligence (AI) Stock Before the Market Crashes, It Would Be This One
The author warns that the S&P 500 Shiller CAPE ratio, above 41, is extremely elevated, and says investors should favor companies with durable advantages before a downturn. Alphabet is highlighted for products embedded in everyday life, a diversified mix of advertising and Google Cloud, and vertical integration including custom TPU chips. In the second quarter, Alphabet reported revenue of $119.8 billion, up 24%, Google Cloud revenue up 82% to $24.8 billion, operating cash flow of $39.1 billion and $242.5 billion in cash and marketable securities. The article notes Alphabet fell 55% in 2008, about 31% in the COVID-19 crash and about 39% in 2022, and the author suggests buying gradually during dips and holding long term.
- Alphabet's (GOOGL) Low P/E Is Misleading, but the AI Opportunity Is Real
Alphabet (GOOGL) shares gained 3.43% over six months to October 15, but its 17.62x trailing P/E is misleading because reported earnings were inflated by large investment gains. Google Search revenue rose 17% to $63.3 billion in Q2 2026, even as ChatGPT and Claude offer alternatives to traditional search. Google Cloud revenue jumped 82% to $24.8 billion with a 35.6% operating margin, and its $514 billion backlog is more than half expected to convert to revenue over the next 24 months. About $99 billion of gains, largely unrealized, could reverse if valuations fall; a rough adjustment puts the trailing multiple near 26x, versus a 22.83x forward P/E.
- 3 Cash Flow Stocks To Watch In October 2026
US inflation reached 3.7% in September, driven by energy costs, which makes reliable cash generation more important for investors. The article covers three stocks screening as attractively priced on future cash flows, out of 92 additional companies the screen surfaced. Alphabet generates about $367.1 billion from Google Services and $77.6 billion from Google Cloud, where AI infrastructure and Vertex AI turn enterprise usage into recurring cash flows. Amazon's North America segment brings in about $453.7 billion and AWS $148.4 billion, with AWS growth reaccelerating to roughly 20% through 2025. The article notes that both companies' cash engines face a major AI infrastructure spending cycle that could reshape future margins.
- Nebius Stock Has Fallen About 40% From Its Record. Here's Why I'm Still Waiting to Buy.
Nebius Group (NBIS) shares have fallen about 40% from their record close of $286.69 on June 18 to around $165, mostly in October, with no company news clearly explaining the drop beyond broader selling in AI cloud stocks. Revenue rose to $582 million in the second quarter, up 454% year over year, but management's 2026 forecast of $3.0 billion to $3.4 billion implies about $2 billion in second-half revenue, more than double the first half's $981 million. The company also posted a net loss from continuing operations of around $190 million and capital expenditures of about $5.7 billion in the quarter, while three customers accounted for 59% of second-quarter revenue. Trading at around 15 times expected 2026 sales, the author says the stock is still not cheap enough and would wait for a third-quarter report showing revenue heading toward $1 billion a quarter and backlog growth from customers beyond Microsoft and Meta.
- Here’s What a $10,000 Investment in Nvidia Stock Will Be Worth by 2030
The article estimates what a $10,000 investment in Nvidia, now worth nearly $179,000 after four years of AI-driven gains, could be worth by 2030. Nvidia's revenue in the first six months of fiscal 2027 rose 96% to $177.8 billion, and analysts expect fiscal 2027 revenue of $411.6 billion, with EPS nearly doubling to $9.31. The author cites Jensen Huang's view that chip sales will double in 2027 and a $3 trillion to $4 trillion AI infrastructure opportunity by 2030. Assuming revenue reaches $1.09 trillion in 2030 and the stock trades at half its current 18 times sales, the market cap could reach $9.8 trillion, implying 88% upside and a $10,000 stake worth more than $18,800. The article calls this a conservative estimate.
Related markets
Latest news
- JPMorgan's JPM Coin, representing dollar deposits, is coming to Ethereum: Bloomberg
JPMorgan will make JPM Coin, a token representing its dollar deposits, available to institutional clients on Ethereum, according to Bloomberg. The bank says Ethereum's liquidity makes it attractive to crypto companies seeking blockchain payments and to financial firms settling trades or backing tokenized assets. The move extends JPMorgan's blockchain work beyond Base and its private Kinexys network, which processes more than $7 billion daily. The bank did not say when the token will go live on Ethereum. Meanwhile, JPMorgan is among US banks planning a shared tokenized deposit network, but it was not on Swift's list of 17 banks preparing live transactions on its blockchain ledger in July.
- Cerrado Gold Reports 21% Year-Over-Year Increase in Q3 2026 Production Results at Minera Don Nicolas
Cerrado Gold reported Q3 2026 production of 16,685 GEO at the Minera Don Nicolas (MDN) mine in Santa Cruz Province, Argentina, up 21% from 13,832 GEO in Q3 2025. Year-to-date output reached 44,942 GEO, up 23% from 36,432 GEO in the comparable 2025 period. Heap leach output held steady at 9,649 GEO, while CIL output rose to 7,036 GEO as higher-grade Calandrias material, generally above 2.5 g/t gold, was routed to the Martinetas mill. Laboratory tests on selected material showed gold recoveries of up to 95%, versus about 60% expected from heap leaching, and the company now expects full-year 2026 production at the upper end of its 50,000 to 60,000 GEO guidance while targeting a new PEA by late Q1 2027.
- Is Visa Stock Still a Buy After Gaining 14% This Year?
Visa shares hit an all-time high of $401, up about 12% over the past two weeks from $359 at the end of September and up 14% year to date. Key catalysts include approval from the People's Bank of China to set up a bankcard clearing institution in China and the move of Visa Direct's stablecoin to commercial deployment on Oct. 15. Baird and BMO Capital both raised their price targets. Visa reports fiscal fourth-quarter earnings on Oct. 27 and has raised its dividend every year since 2009, last year by 14% to $0.67 per share. The author still considers the stock a buy ahead of earnings, citing a forward P/E of 24.
- Five things to watch in markets in the week ahead
Markets start the week with AI stocks under pressure after hotter-than-expected September inflation raised expectations of higher US rates and fed worries about debt-funded AI spending. Last week the Philadelphia semiconductor index fell 11.41% and the Nasdaq Composite lost 4.48%, with CoreWeave shedding about a quarter of its value and Oracle down 9.31%. Earnings are in focus, with SpaceX and Netflix reporting on Tuesday and Meta and Tesla on Wednesday after the close. Netflix reportedly plans to cut around 6% of its workforce, roughly 1,000 roles, its biggest reduction since 2022. SpaceX has also agreed to buy spectrum licenses from Grain Management for about $8 billion, a move into the wireless market.
- eMemory/PUFsecurity Showcases OCP S.A.F.E.-Approved PUFrt at OCP Global Summit, Strengthening AI Data Center Security with Caliptra
PUFsecurity, a subsidiary of eMemory Technology, was featured at Microsoft's Caliptra Workshop on Oct. 12, the opening day of the 2026 OCP Global Summit, which drew nearly 400 attendees. Its PUFrt received OCP S.A.F.E. Scope 3 approval after an independent assessment of its resistance to physical attacks such as fault injection and side-channel attacks, and is now listed on the OCP Marketplace. PUFrt provides the physical security foundation for Caliptra, an open-source hardware Root-of-Trust architecture, from key generation to chip mass-production testing. It has already been integrated into Caliptra products from ASPEED and security systems from several memory makers and networking chip vendors. The company says the milestone advances hardware security for cloud and AI infrastructure.
- Crypto vault deposits top $10 billion as lending risks draw regulatory scrutiny
Deposits into crypto lending vaults have risen from $4 billion at the start of last year to more than $10 billion, according to the Financial Times. Each vault is run by a 'curator' who selects lending strategies through smart contracts on DeFi platforms, sets risk limits and collects fees, with typical returns of 3% to 10% and riskier strategies reaching 20% or more. Risks include illiquid or hard-to-sell collateral, automatic liquidations, hacks and coding errors, while investors may focus on headline yields. Fintechs, digital asset treasury firms and hedge funds are among the main depositors, and Bitcoin lender Two Prime launched a vault on Pareto targeting 1.5% to 2% yields, with a minimum deposit of 5 WBTC and about $10 million of its own capital absorbing initial losses. U.S. and European regulators are examining whether existing rules should apply, and the SEC has questioned vaults that hold securities.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.