Morgan Stanley raises Alphabet's target to $415, bullish on Google Cloud reaching $308 billion by 2028.

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Deep Tide TechFlow News, according to Tide Research, Morgan Stanley raised its price target for Alphabet from $375 to $415 on June 29, maintaining an "overweight" rating.

The report expects Google to add 9 GW of computing capacity by 2028, with 7 GW coming from its self-developed TPU and 2 GW from Nvidia GPUs. Based on this, Morgan Stanley predicts Google Cloud's 2028 revenue will reach $308 billion (core cloud services $229 billion plus TPU external sales $79 billion), and Cloud EBIT will reach $132 billion, accounting for 46% of the entire company.

Morgan Stanley raised its 2027 capital expenditure from $300 billion to $350 billion, but noted that Google can partially absorb the pressure through data center infrastructure outsourcing and the cost advantage of MediaTek TPUs. At the current stock price of $353.65, the 2028 P/E ratio is 18 times, lower than the long-term average of 21 times.

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