This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) is expected to see further upside through 2027 after a new Wall Street note raised its price outlook and pointed to stronger long-term growth assumptions in artificial intelligence and cloud computing, according to a Tuesday research update.
Google cloud expansion remains central, with TD Cowen estimating about 30.74% upside to 2027 and projecting data center capacity measured in gigawatts could rise tenfold between 2022 and 2031 as AI demand accelerates.
Google consensus estimates remain below TD Cowen’s outlook, with average expectations pointing to roughly 14.98% upside to $427.46, while sentiment stays at a Strong Buy with 28 Buy ratings and five Holds.
Overall outlook for Google continues to trend upward as analysts factor in improving cloud margins and sustained AI adoption, with recent revisions suggesting further upward adjustments to earnings expectations over the coming quarters as infrastructure investment expands across enterprise and consumer demand cycles.
Investors are watching whether valuation assumptions keep pace with accelerating capital spending in AI infrastructure. Analysts say visibility into cloud demand remains a key driver.
