Analysts Maintain Buy Rating on Alphabet: TPU Sales Seen as Key Turnaround Catalyst

Despite Alphabet (GOOGL) lagging behind OpenAI and Anthropic in the AI model race and facing competition from Meta's Muse, analysts maintain a buy rating. The company's strategic focus has shifted toward Google Cloud and its proprietary TPU hardware, which offers superior cost-performance. Wall Street projects that TPU sales and infrastructure options could drive revenue to approximately $730 billion by FY2028, making the current valuation an attractive entry point.