Observed Signal · May 6, 2026 · Analyst Rating / Price Target Update · Source: CNBC Investing · Impact: 4/5 · Sentiment: Positive
Alphabet to Gain from Google Cloud and TPU Growth
Mizuho Financial reiterated an outperform rating on Alphabet and raised its 12-month price target to $460 from $420, citing stronger-than-expected Google Cloud revenue and TPU (tensor processing unit) hardware sales. Analyst Lloyd Walmsley said cloud backlog data and supply-chain hardware estimates point to Google Cloud revenue and operating income materially above consensus, forecasting 70% year-over-year Cloud revenue growth by the end of 2026 versus Street estimates of 58%. Mizuho also argued TPU and other hardware sales can deliver margins comparable to traditional compute rental. The note accompanies broad Wall Street bullishness: 53 of 61 analysts rate Alphabet a buy or strong buy, and Alphabet shares had risen more than 29% over the prior month. Published May 6, 2026.
Mizuho’s upgraded price target and bullish forecast for Google Cloud and TPU hardware — tied to AI infrastructure — affect expectations for a major platform (Alphabet) and could influence investor sentiment and cloud/AI infrastructure demand across the industry.
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Key Takeaways & Evidence Grounding
- Mizuho Financial reiterated an outperform rating on Alphabet and raised its 12-month price target to $460 from $420.
- Mizuho forecasts Google Cloud revenue will grow 70% year-over-year by the end of 2026, above the analysts' consensus of 58%.
- Analyst Lloyd Walmsley cited cloud backlog data and supply-chain hardware estimates indicating Cloud revenue and operating income ahead of Street estimates.
- Mizuho said Google hardware sales, including tensor processing units (TPUs), can generate margins at least comparable to traditional compute rental business.
- LSEG data shows 53 of 61 analysts covering Alphabet have a buy or strong buy rating.
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