This Analyst Just Called Alphabet 2027's Best Stock. She Might Be Right

Wolfe Research has named Alphabet Inc. as a top stock pick for 2027, projecting substantial long-term gains driven by the company's full vertical integration across the artificial intelligence value chain. Analyst Shweta Khajuria raised Wolfe's 2027 revenue forecast for Alphabet by 10% to $595 billion and lifted earnings-per-share estimates by 6% to $15.89, alongside assigning a $460 price target. The bullish stance centers on Alphabet's unique capability to monetize AI across chips, cloud infrastructure, model development, and consumer distribution. Alphabet's recent performance highlights accelerating momentum, with Google Cloud revenue surging 82% year-over-year to $24.8 billion in the second quarter, backed by a massive $514 billion backlog and operating margin expansion to 35.6%. Furthermore, external sales of Google's proprietary Tensor Processing Units (TPUs) provide a new revenue stream, with shipments forecasted to reach 8.8 million units by 2027. While substantial capital expenditures of up to $205 billion in 2026 and an estimated $330 billion in 2027 present near-term cash flow headwinds, analysts believe Alphabet's end-to-end AI ecosystem positions it to generate unmatched recurring enterprise demand.