Alphabet stock eyes breakout above all-time high as AI chip strategy reshapes sentiment

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Analyst raises forecast for Alphabet stock

Highlights

Alphabet holds triangle support near $316 as EMAs guide price toward bullish breakout
Google’s 400 TPU patents in 2023 strengthen AI hardware leadership over major tech rivals
Research firms like Jefferies, Melius, and Pivotal lift price targets for GOOGL toward $365 to $400

This convergence is approaching a decision point, and a breakout appears imminent. Given the current momentum around Alphabet’s AI hardware expansion and dovish monetary policy sentiment, a bullish breakout appears increasingly probable. The recent bullish tone was ignited on Friday, January 2, when Alphabet stock jumped 3% to $315.15. The surge followed investor optimism around Google’s growing independence from Nvidia. The company’s internal development of TPU (Tensor Processing Unit) chips is gaining traction, and the push to commercialise this effort has become a key narrative in shaping future market share in the AI infrastructure space.

Alphabet price chart (Nov 2025 - Jan 2026). Source: Tradingview

TrendForce data published alongside Nikkei revealed that Google filed nearly 400 TPU-related patents in 2023 alone. That figure is triple the level recorded five years ago and significantly outpaces Amazon, Apple, and Microsoft, each of whom registered fewer than 100 TPU patents within the same period. This sharp rise in patent filings signals aggressive capital allocation toward chip innovation and platform differentiation. Analysts expect TPU sales to grow over 40% in 2026, driven by hyperscale cloud clients shifting to in-house architectures for cost savings and performance efficiency.

Jefferies raises GOOGL price target to $365 after positive updates on TPU chip demand

Strategic partnerships are also reinforcing Google’s positioning. Anthropic has secured access to one million TPUs in a deal worth tens of billions of dollars, while Meta is reportedly in talks to adopt these chips by 2027. Such deals expand the total addressable market for Alphabet’s AI verticals and amplify investor confidence in sustained revenue diversification beyond search and ads.

On the technical front, the current consolidation under the triangle pattern suggests that bulls are waiting for a fresh catalyst. Price holding above the short-term EMAs increases the probability of an upward resolution. Multiple research firms have responded positively. Jefferies investment bank analyst raised its price target on Alphabet to $365 per share from $320, while Melius Research revised its forecast to $350. Pivotal Research set the bar higher, maintaining a Buy rating and projecting a long-term target of $400.

In recent analysis, we discussed how Alphabet broke its December trendline after rebounding from 20-day EMA support. The rally to a four-week high confirmed bullish continuation, setting sights on the $328.8 target.

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