Piper Sandler raises Alphabet target to $400 on TPU sales outlook

Piper Sandler raised its price target on Alphabet shares to $400 from $395 and reiterated its overweight rating. The bank cited expectations that sales of Google’s Tensor Processing Units (TPUs) could exceed $100 billion by 2028.

Piper Sandler also raised its Google Cloud revenue estimates for 2027 and 2028 to 15% and 17% above market consensus, respectively.

Koray Kavukcuoglu, head of Google’s DeepMind division, said the company aims to release Gemini 4 much earlier than the end of the year. Google also confirmed it will continue supporting existing Chromebook devices as it transitions to the new Googlebook OS.

Separately, Senate Democrats are investigating tax benefits Alphabet and other tech companies have received for investing in AI and data centers.