$Alphabet(GOOGL)$ $Alphabet(GOOG)$
They are keeping an Outperform rating on Alphabet and significantly raising GCP estimates after digging into the TPU outlook. Their AI survey also points to Alphabet holding the lead with consumers. The firm is forecasting 6.6GW of TPU sales, or about $170B cumulative incremental TPU sales through 2028, which isn't in Street estimates.
The new estimates point to 15%/30% upside to Street GCP revenue and 4%/18% upside to consolidated EPS in 2027/2028, assuming very conservative TPU margins. The survey was done before Meta's Muse launch, but it shows Gemini is the second most used AI behind ChatGPT, while participants trust Google about four times more than Meta with passwords.
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