Sep. 10 at 11:39 AM
$GOOGL $GOOG $META
Oppenheimer sees big TPU revenue upside for Alphabet after deep-dive analysis
Oppenheimer is reiterating an Outperform rating on Alphabet (GOOG) and substantially increasing GCP estimates following deep-dive into TPU outlook. The firm also conducted an AI survey that suggests Alphabet remains in lead position with consumers. Oppenheimer is forecasting 6.6GW of TPU sales or about
$170B cumulative incremental TPU sales through 2028 which is not in Street estimates.
New estimates suggest 15%/30% upside to Street GCP revenue and 4%/18% upside to consolidated EPS in 2027/2028, assuming very conservative TPU margins. While conducted before Meta (META) Muse launch, its survey indicates Gemini is second most used AI behind ChatGPT, but participants trust Google about four-times more than Meta with passwords.
