TLDR
- Alphabet stock rose 2.1% on April 22 after unveiling its new TPU 8i AI inference chip at Google Cloud Next.
- The TPU 8i promises faster performance and better energy efficiency for large-scale AI models.
- Jim Cramer has set a $400 price target for GOOGL, implying roughly a 19% upside from ~$336.
- Wall Street’s average 12-month price target sits at $387.68, with an overall “Strong Buy” rating.
- GOOGL is up 8.4% year to date, outpacing its industry peers including Baidu and DoorDash.
Alphabet stock got a modest lift on April 22 after the company pulled back the curtain on its latest in-house chip at the annual Google Cloud Next conference.
The new chip, called the TPU 8i, is designed for AI inference — the process of running trained models in real-time. Google says it delivers faster throughput and lower latency than previous generations, while also being more energy efficient.
The chip is integrated directly into Google Cloud, letting enterprise customers run generative AI tools at scale without relying on third-party hardware. That last point matters to investors. Less dependence on outside chip suppliers could improve margins over time.
During the event, Alphabet ran live demonstrations showing faster query handling and improved AI assistant performance. The message was clear: this isn’t a lab experiment. It’s production-ready.
GOOGL closed up 2.1% on the day following the announcement.
What the Chip Means for Google’s Core Products
Executives said the TPU 8i will power AI features across Google Search, advertising systems, and Workspace tools. That’s a broad deployment footprint.
The move is part of Alphabet’s wider push to build out its own AI infrastructure rather than depend on third parties. It’s a strategy the company has been quietly executing for years — and investors are starting to take notice.
Year to date, GOOGL is up 8.4%, compared with 4.4% for the broader internet services industry. Baidu is down 5.7% over the same stretch. DoorDash has dropped nearly 20%.
Cramer’s $400 Call and Where Wall Street Stands
On April 22, Jim Cramer kept it simple during his lightning round: “Alphabet is going to $400.”
That target implies roughly a 19% gain from the $336.24 price at the time of writing. Cramer has said he regrets selling GOOGL previously, and now believes the company has done enough with its Gemini AI platform to justify a fresh run higher.
He also argues that Google has managed to weave AI into its core search product in a way that, rather than threatening the business, has reinforced it.
Wall Street is mostly on the same page. The average 12-month price target from analysts tracked by TipRanks sits at $387.68 — a projected 14.25% gain. The consensus rating is “Strong Buy.”
Cramer’s $400 target is above that average, but still below the street-high forecast of $450.
Alphabet currently carries a Zacks Rank of #3 (Hold)
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