TechFlow reports, citing TechFlow Research, Morgan Stanley raised Alphabet's price target from $375 to $415 on June 29, maintaining an "Overweight" rating.
The report expects Google to add 9 GW of computing capacity in 2028, with 7 GW from in-house TPUs and 2 GW from NVIDIA GPUs. Based on this, Morgan Stanley predicts Google Cloud revenue will reach $308 billion in 2028 (core cloud services $229 billion plus external TPU sales $79 billion), and Cloud EBIT will reach $132 billion, accounting for 46% of the entire company.
Morgan Stanley raised the 2027 capital expenditure from $300 billion to $350 billion, but noted that Google is absorbing part of the pressure through data center infrastructure outsourcing and MediaTek TPU cost advantages. The current stock price of $353.65 corresponds to 18x 2028 EPS, below the long-term average of 21x.
