--- title: "Top Mizuho Analyst Lifts Alphabet (GOOGL) Stock Price Target on Upside in Google Cloud" type: "News" locale: "en" url: "https://longbridge.com/en/news/285603222.md" description: "Top Mizuho analyst Lloyd Walmsley has raised his price target for Alphabet (GOOGL) from $420 to $460, citing strong growth in Google Cloud and AI integration. GOOGL shares have risen 27% year-to-date. Walmsley expects Google Cloud revenue growth of 70% in 2026 and 59% in 2027, surpassing market expectations. He also increased his earnings per share estimates for 2026 and 2027 to $14.31 and $15.12, respectively. His revised price target reflects a P/E multiple of 30x 2027 GAAP EPS, indicating Alphabet's shift to an AI leader." datetime: "2026-05-07T19:12:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285603222.md) - [en](https://longbridge.com/en/news/285603222.md) - [zh-HK](https://longbridge.com/zh-HK/news/285603222.md) --- # Top Mizuho Analyst Lifts Alphabet (GOOGL) Stock Price Target on Upside in Google Cloud Shares of tech giant Alphabet (GOOGL) have risen 27% year-to-date, driven by the strength in its Google Cloud business, integration of artificial intelligence (AI) in Search, and the growing adoption of the company's TPU (Tensor Processing Unit) AI chips. Top Mizuho analyst Lloyd Walmsley sees further upside potential in GOOGL stock and raised his price target to $460 from $420, while reiterating a Buy rating, "We believe consensus estimates continue to significantly under-model Google Cloud revenue and operating income potential over the next two years," said Walmsley. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks ## **Mizuho Analyst Is Bullish on Google Cloud's Prospects** Walmsley's analysis of the latest cloud backlog data and hardware sales estimates from Mizuho's supply chain team indicate Cloud segment revenue and operating income projections that are notably ahead of the Street's estimates. He highlighted that in Q1 2026, Google Cloud backlog surged 90% quarter-over-quarter to about $462 billion, with an estimated $61 billion expected to be achieved via TPU sales through 2027. Based on his analysis and the solid backlog, Walmsley now expects Google Cloud revenue growth of 70% in 2026 and 59% in 2027, compared to the Street's expectations of 58% and 47%, respectively. While the company has not disclosed the revenue recognition method or margin profile of chip sales, the 5-star analyst believes that hardware sales can deliver margins at least comparable to the company's traditional cloud compute rental business. Overall, Walmsley increased his 2026 and 2027 revenue and operating income estimates for the Google Cloud segment and raised his earnings per share (EPS) estimate for 2026 and 2027 to $14.31 and $15.12, respectively, ahead of consensus estimates of $13.50 and $14.43. The analyst added that his revised price target is based on a P/E multiple of 30x 2027 GAAP EPS of about $15. He emphasized that this P/E multiple is above GOOGL's range for the past 3-years, reflecting his view that Alphabet has "shifted from AI Loser to AI Winner and deserves a premium." Interestingly, Walmsley ranks No. 169 among more than 12,200 analysts tracked on TipRanks. He has a success rate of 63%, with an average return per rating of 24.9% over a one-year period. ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [8411.JP](https://longbridge.com/en/quote/8411.JP.md) - [MFG.US](https://longbridge.com/en/quote/MFG.US.md) ## Related News & Research - [Sundar Pichai said a Google AI Search result was 'more opinionated than it should be'](https://longbridge.com/en/news/287774560.md) - [How marketers are reacting to Google's big search and AI changes](https://longbridge.com/en/news/287766340.md) - [Why Traders Are Watching Bull Call Spreads on GOOGL](https://longbridge.com/en/news/287758866.md) - [Your AI bill is out of control. Google has been waiting for this moment.](https://longbridge.com/en/news/288039977.md) - [Alphabet (GOOGL) Gets Valued for Google Search. The Market Still Undervalues Waymo](https://longbridge.com/en/news/287926143.md)