Key Takeaways
- Alphabet shares advanced 2.1% on April 22 following the introduction of its TPU 8i AI inference chip at the Google Cloud Next conference.
- The new TPU 8i delivers enhanced speed and energy efficiency for deploying large-scale artificial intelligence models.
- TV personality Jim Cramer projects a $400 price target for GOOGL shares, representing approximately 19% upside from current levels around $336.
- Analyst consensus shows a 12-month average target of $387.68 with a “Strong Buy” recommendation across Wall Street.
- GOOGL has gained 8.4% in 2024, significantly outperforming competitors like Baidu and DoorDash.
Shares of Alphabet experienced an uptick on April 22 as the tech giant introduced its newest proprietary semiconductor at the Google Cloud Next annual gathering.
Dubbed the TPU 8i, this latest processor focuses specifically on AI inference—the stage where trained machine learning models execute real-world tasks. According to Google, the chip provides superior processing speed and reduced response times compared to earlier versions, all while consuming less power.
The technology is natively embedded within Google Cloud’s infrastructure, enabling business clients to deploy generative AI applications at enterprise scale without depending on external hardware vendors. For shareholders, this vertical integration strategy could translate to improved profit margins down the line.
At the conference, Alphabet’s team conducted live demonstrations highlighting accelerated response times and enhanced AI assistant capabilities. The underlying message resonated clearly: this technology has moved beyond development and is ready for commercial deployment.
GOOGL shares closed 2.1% higher following the reveal.
How the New Chip Impacts Google’s Product Ecosystem
Company leadership indicated the TPU 8i will drive AI functionality throughout Google Search, its advertising infrastructure, and Workspace productivity applications. This represents a substantial implementation across the company’s core offerings.
The initiative aligns with Alphabet’s long-term objective to develop proprietary AI hardware rather than relying on external suppliers. This strategic direction has been unfolding behind the scenes for several years—and the investment community is beginning to recognize its significance.
Since January, GOOGL has climbed 8.4%, while the broader internet services sector has risen just 4.4%. Meanwhile, Baidu has declined 5.7% during the same period, and DoorDash has fallen nearly 20%.
Cramer’s Bold Forecast and Wall Street’s Perspective
During his April 22 lightning round segment, Jim Cramer delivered a straightforward prediction: “Alphabet is going to $400.”
This projection suggests approximately 19% appreciation from the current trading price of $336.24. Cramer has publicly acknowledged regretting a previous decision to exit his GOOGL position, and now maintains that the company’s progress with its Gemini AI platform warrants a substantial rally.
He further contends that Google has successfully integrated artificial intelligence into its search engine in a manner that strengthens rather than disrupts the existing business model.
The analyst community largely shares this optimistic outlook. Data compiled by TipRanks shows an average 12-month price objective of $387.68—indicating potential upside of 14.25%. The overall analyst rating stands at “Strong Buy.”
While Cramer’s $400 forecast exceeds the Wall Street average, it remains below the most aggressive analyst target of $450.
Alphabet currently holds a Zacks Rank of #3 (Hold)
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