Key points
- Wolfe Research named Alphabet (GOOGL) a top pick for 2027 and kept its $460 target, about 35% above the August 26 close.
- It models Google Cloud Platform revenue up 125% in the third quarter, against a Street consensus of 87%.
- Wolfe raised its 2027 revenue estimate 10% to $595 billion and its earnings estimate 6% to $15.89 a share.
Wolfe Research named Alphabet (GOOGL) one of its top picks for 2027 on August 27. The firm reiterated an Outperform rating and a $460 price target, and raised its 2027 estimates for the company. The note came from analyst Shweta Khajuria and was reported by Investing.com.
| Wolfe's 2027 estimate | New | Change |
|---|---|---|
| Revenue | $595 billion | up 10% |
| Earnings per share | $15.89 | up 6% |
The line that stands out is the cloud estimate. Wolfe models Google Cloud Platform revenue growth of 125% year over year for the third quarter, while the Street consensus for the same period is 87%.
That figure covers Google Cloud Platform, the infrastructure and services business, which is a piece of the wider Google Cloud segment rather than the whole thing. The segment also carries Workspace and grows more slowly. Google Cloud revenue rose 34% in the third quarter of 2025, the quarter Wolfe's estimate is measured against, and Alphabet said that growth was "led by growth in Google Cloud Platform (GCP) across core products, AI Infrastructure and Generative AI Solutions."
Google's own AI chips sit behind the estimate
Khajuria has tied the cloud strength to Google's custom silicon. In June, she raised her Google Cloud Platform revenue growth estimates to 81% for 2026 and 48% for 2027, running 11 and 8 percentage points above consensus. Wolfe has put more than $100 billion of tensor processing unit sales in Alphabet's 2026 backlog, and expects 2 to 3 gigawatts of external TPU capacity in 2027, with another 4 to 5 gigawatts used internally.
The spending behind that keeps climbing. Wolfe raised its 2027 capital expenditure estimate for Alphabet by $25 billion to $330 billion. Alphabet lifted its own 2026 capex guidance to a range of $195 billion to $205 billion, up from $180 billion to $190 billion. Google has gone outside for silicon too. This month Marvell (MRVL) gave it a warrant worth up to $12.2 billion as part of an AI chip deal.
Alphabet closed at $342.00 on August 26, which puts the $460 target about 35% higher and values the stock at about 21.5 times Wolfe's 2027 earnings estimate. Berkshire Hathaway nearly doubled its Alphabet stake in the second quarter, making it a larger position than Coca-Cola.
This is general information, not investment advice.
