Alphabet Stock Analyst Targets Surge as SpaceX Deal Confirms AI Compute Supply Crunch

▤ Summary

Alphabet is facing a major AI compute supply crunch, which it is partially offsetting by renting Nvidia GPUs from SpaceX. Analysts are raising price targets because Google Cloud backlog, AI search usage, and TPU chip sales are all pointing to stronger revenue growth. UBS now models Google Cloud differently by separating core cloud, Vertex AI, and large AI contracts, which materially lifts its revenue forecast. The article also highlights regulatory risks in adtech and search that could still affect the bullish case. Overall, the story centers on Alphabet’s shift into a hybrid software-and-silicon vendor with heavy infrastructure demand.

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