On October 13, 2026, BNP Paribas increased its price target for Alphabet Inc (NASDAQ: GOOGL) from $420 to $450, citing strong revenue prospects from its tensor
On October 13, 2026, BNP Paribas increased its price target for Alphabet Inc (NASDAQ: GOOGL) from $420 to $450, citing strong revenue prospects from its tensor
On October 13, 2026, BNP Paribas increased its price target for Alphabet Inc (NASDAQ: GOOGL) from $420 to $450, citing strong revenue prospects from its tensor processing units (TPUs). This revision reflects growing optimism around Alphabet’s AI hardware business and its impact on future earnings.
GF Value™ indicates Alphabet is currently 38.2% overvalued, with a GF Value™ of $257.55 versus the recent price of $355.88.
Alphabet’s GF Score™ stands at an impressive 93 out of 100, signaling robust overall business quality and momentum.
Insider activity shows sustained net selling over the past 12 months, with no insider purchases and $131.5 million in shares sold, while 54 premium gurus currently hold the stock, though 35 have trimmed positions recently.
What's Behind the News?
BNP Paribas’ upward revision of Alphabet’s price target to $450 is primarily driven by anticipated external sales of TPUs, specialized AI chips developed by Alphabet. The firm projects that TPU sales could generate between $80 billion and $100 billion in revenue by 2028, contributing significantly to Alphabet’s operating profits despite some margin dilution in Google Cloud due to supply chain and profitability uncertainties. This bullish outlook underscores the growing importance of AI infrastructure in Alphabet’s long-term strategy.
Alphabet Inc operates as a holding company with its largest business being Google, segmented into Google Services and Google Cloud, alongside other ventures such as Waymo and Isomorphic Labs. The company’s market capitalization stands at a staggering $4.35 trillion, making it one of the largest players in the Communication Services sector and the Interactive Media industry. Alphabet’s diverse portfolio spans advertising, cloud infrastructure, AI development, and emerging technologies, positioning it at the forefront of innovation worldwide.
Is GOOGL Overvalued or Undervalued?
Despite the positive news from BNP Paribas, Alphabet’s valuation remains a critical consideration. The GF Value™ of $257.55 compared to the current price of $355.88 suggests the stock is approximately 38.2% overvalued, indicating a limited margin of safety for new investors at current levels. This valuation gap reflects the market’s premium pricing on Alphabet’s growth prospects, especially in AI and cloud computing.
Averytin News Financial update.