Morgan Stanley Raises Alphabet Price Target to $415, Bets on Google Cloud Reaching $308B Revenue in 2028

Morgan Stanley raised its Alphabet price target to $415, citing strong growth prospects for Google Cloud. The bank projects Google will add 9 gigawatts of compute capacity by 2028, comprising 7 GW from custom TPU chips and 2 GW from Nvidia GPUs. Based on this infrastructure expansion, Morgan Stanley forecasts Google Cloud revenue will reach $308 billion in 2028—consisting of $229 billion in core cloud services and $79 billion from TPU sales—with Cloud EBIT reaching $132 billion, representing 46% of the company's total EBIT.
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