--- title: "Google Cloud Revenue Surges: Alphabet Focuses on $100 Billion TPU Opportunity Ahead of Q3 Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/302898732.md" description: "Alphabet stock faced pressure due to heavy AI spending and cloud competition ahead of Q3 earnings. Analysts remain bullish: Bank of America forecasts strong cloud growth, BNP Paribas sees a $100B TPU opportunity, and Jefferies highlights Gemini's pricing advantage. Alphabet is expected to report EPS of $3.02 and revenue of $128.2B on Oct 28, with a consensus Buy rating." datetime: "2026-10-23T14:25:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/302898732.md) - [en](https://longbridge.com/en/news/302898732.md) - [zh-HK](https://longbridge.com/zh-HK/news/302898732.md) generator: "portal-rs" --- # Google Cloud Revenue Surges: Alphabet Focuses on $100 Billion TPU Opportunity Ahead of Q3 Earnings **Alphabet Inc.** (NASDAQ:GOOGL) (NASDAQ:GOOG) stock remained under pressure Friday after falling about 3% Thursday in the morning as investors weighed AI infrastructure constraints, heavy capital spending and intensifying cloud competition ahead of third-quarter earnings. The stock has gained single digits in 2026, driven by remarkable infrastructure spending and cash flow pressure. CEO **Sundar Pichai** said Google Cloud is prioritizing limited computing capacity for internal DeepMind models, raising concerns that some commercial customers could shift workloads to rivals. Investors are also watching Alphabet’s projected $195 billion-$205 billion in 2026 capital expenditures as the company expands AI and data-center capacity. **• What’s the outlook for GOOGL shares?** ## **Bank Of America Sees Cloud Upside** **Bank of America Securities** analyst **Justin Post** maintained a Buy rating and a $340 price forecast. Post forecasts third-quarter revenue of $111.4 billion and GAAP EPS of $3.07, both above Street expectations. He expects Google Cloud revenue to grow 93%, compared with the 89% consensus, supported by additional capacity and TPU sales. He estimates 2026 capital expenditure at roughly $200 billion and 2027 spending near $300 billion, with upside risk. ## **BNP Paribas Sees $100 Billion TPU Opportunity** **BNP Paribas** analyst **Nick Jones** maintained an Outperform rating and raised his price forecast to $450 from $420. Jones estimates external TPU commitments could generate $80 billion-$100 billion in cumulative revenue through 2028. He forecasts more than $4 billion in TPU revenue in 2026, over $40 billion in 2027 and more than $30 billion in 2028. Jones cautioned that TPU sales could pressure Cloud margins near term while still adding to operating income. ## **Jefferies Highlights Gemini Pricing Advantage** **Jefferies** analyst **Brent Thill** called Gemini 4 Argon "a great step in the right direction." Thill said Argon’s pricing, roughly 50% below some competing models, could force rivals to respond. He also sees Google’s broader ecosystem across applications, data and infrastructure as an advantage beyond individual model performance. ## **Earnings And Analyst Outlook** **Alphabet is scheduled to report earnings on Oct. 28.** Analysts expect EPS of $3.02, up from $2.87 a year earlier, and revenue of $128.20 billion, up from $102.35 billion. Alphabet carries a Buy consensus rating with an average price forecast of $428.28. Citizens maintained Market Outperform and lowered its forecast to $450 on Oct. 22. BMO Capital maintained Outperform and raised its forecast to $480, while KeyBanc maintained Overweight and lowered its forecast to $410. ## **Top ETF Exposure** The **MicroSectors FANG+ 3x Leveraged ETN** (NYSE:FNGU), **Fidelity Fundamental Large Cap Growth ETF** (NASDAQ:FFLG) and **MicroSectors FANG+ ETNs** (NYSE:FNGS) each carry a **9.67% weighting** in Alphabet. Significant flows into or out of these funds can translate into corresponding trading activity in Alphabet shares. **GOOGL** **Price Action:** Alphabet shares were down 0.26% at $323.19 on Friday at publication, according to Benzinga Pro data. *Image via Shutterstock* **Read Also: If There’s a Problem With Google Search, There’s a Problem With Google Stock: Analyst** ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.US.md) - [GOIB.US](https://longbridge.com/en/quote/GOIB.US.md) - [GOOL.US](https://longbridge.com/en/quote/GOOL.US.md) - [GOOP.US](https://longbridge.com/en/quote/GOOP.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GOOX.US](https://longbridge.com/en/quote/GOOX.US.md) - [GOOY.US](https://longbridge.com/en/quote/GOOY.US.md) - [GOU.US](https://longbridge.com/en/quote/GOU.US.md) - [FFLG.US](https://longbridge.com/en/quote/FFLG.US.md) - [FNGS.US](https://longbridge.com/en/quote/FNGS.US.md) - [FNGU.US](https://longbridge.com/en/quote/FNGU.US.md) - [JEF.US](https://longbridge.com/en/quote/JEF.US.md) - [KEY.US](https://longbridge.com/en/quote/KEY.US.md) ## Related News & Research - [Internal docs reveal how Google is shaking up its interview process with AI](https://longbridge.com/en/news/302399346.md) - [Google CEO Says Fully Self-Improving AI Is Still a Long Way Off](https://longbridge.com/en/news/302723222.md) - [Evercore raises Alphabet estimates on potential TPU hardware sales](https://longbridge.com/en/news/302133724.md) - [Glance and Google Partner to Bring an AI-Powered Commerce Experience to Android TV™](https://longbridge.com/en/news/302564094.md) - [3,409 Alphabet Inc. $GOOG Shares Acquired by NFSG Corp](https://longbridge.com/en/news/302185458.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**