With a profit margin of 37.92% and a net profit of $132.17 billion (for fiscal year 2025), Alphabet (the parent company of tech giant Google) is among the most profitable blue chip stocks to buy, according to hedge funds. Meanwhile, analysts predict a 16.70% increase in the company's stock.
This position is supported by results that continue to impress, notes Yahoo Finance.
In late April, Alphabet Inc. reported total revenue of $109.9 billion, up 22% from the previous year. Google Cloud grew 63% to $20 billion, the best growth rate since the segment began reporting separately in 2020, with cloud operating revenue tripling to $6.6 billion. The unit's order book nearly doubled quarter-on-quarter to $460 billion, indicating sustained demand going forward.
Recently, Alphabet Inc. also attracted attention in the chip (processor) sector.
On June 8, 2026, Reuters reported, citing The Information, that Google, part of Alphabet Inc., had placed an order with US giant Intel to manufacture more than 3,000,000 tensor processing units in 2028. This potential order would strengthen Intel's custom chip manufacturing business as the US company seeks to compete with Taiwan's TSMC, whose capacity constraints have prompted several major designers of Artificial Intelligence (AI) chips to look for alternatives.
Tensor Processors (or Tensor Processing Units – TPU) are specialized chips designed to accelerate massive mathematical calculations in AI and Machine Learning. They excel at performing massively parallel computations with data matrices (tensors), being used in data centers to train large language models. Tensor processors are also used in Google's Pixel smartphones.
Analyst Gil Luria of DA Davidson noted that Google and Nvidia are particularly motivated to support Intel, given the current administration in Washington's efforts to promote US manufacturing.
Following the Reuters article, on June 9, 2026 TD Cowen analyst John Blackledge raised the firm's price target for Alphabet Inc. from $450 to $475, maintaining the “Buy” rating. The firm raised its long-term estimates for Google Cloud following an analysis of cloud AI capacity and revenue, and expects Google's total data center capacity to grow more than tenfold between 2022 and 2031. TD Coewn also expects cloud margins to grow steadily.
Alphabet Inc. is a holding company that manages Google services, including search engines, advertising platforms, internet browsers, devices, mapping software, app stores, video streaming services and more. The company also provides cloud infrastructure and platform services, collaboration tools and other services to corporate customers, as well as healthcare and Internet services.
