Nvidia vs Alphabet Stock: Which AI Giant Has More Upside Heading Into 2027?

• Nvidia stock generated $96.2 billion in Q2 FY2027 revenue, while GOOG stock reported $127.6 billion in Q3 2026 revenue
• Nvidia vs Google competition is intensifying as Google expands its TPU business to challenge demand for Nvidia GPUs
• NVDA stock declined to 0.95x its starting value in 2026, compared with 0.91x for GOOG stock, according to the MCO ROI comparison

Nvidia and Alphabet are both taking different routes to benefit from the growing demand for artificial intelligence. Nvidia is responsible for supplying GPUs to many of the world’s AI data centers. Meanwhile, Google is expanding its own chip business through Tensor Processing Units, or TPUs. The latest TPU launch has added another layer to this growing competition, raising questions about whether it will be NVDA stock or GOOG stock that will take the lead next year.

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Google Is Working on Expanding Its New TPU Business

Google announced its TPU 8tx and TPU 8i Max systems on November 9. This launch has led Google stock to gain central attention as the company expands its eighth-generation chip portfolio. The new TPU 8tx is designed for secure and confidential AI computing, while TPU 8i Max has been created to focus on demanding workloads and comes with larger memory capacity and greater computing power.

This launch is intended to attract more customers and to fuel the demand for its own chips. The company shared how nearly 100 customers are now using its TPUs, including AI labs, trading firms, retailers, and universities. This expansion has given another chance to GOOG to benefit from rising AI spending.

Google’s latest Q3 results show that its cloud business is steadily rising. Alphabet reported $127.6B in Q3 revenue, up 25% YoY. At the same time, its cloud revenue surged 103% to $30.7B.

Nvidia Stock Leads In AI Revenue

Nvidia remains a major supplier of the computing hardware used to train and run advanced AI models. NVDA GPUs are widely used by multiple industries, including cloud providers, tech companies, and developers.

Nvidia’s latest earnings for Q2 FY2027 were announced on Aug 26, 2026. The company had generated $96.2B in revenue, marking a 106% increase from the previous year. The firm’s data center business contributed $89B, up 117% YoY.

Nvidia further reported a quarterly net income of $59.7B, with diluted earnings per share rising to $2.46. The company now expects its quarterly Q3 FY2027 revenue to reach approximately $108B, plus or minus 2%. The forecast will be an important measure of how Nvidia offerings continue to lead the AI compute domain.

Nvidia Spy Controversy and Impact On NVDA Stock

Nvidia is currently facing another challenge as its CEO Jensen Huang gets embroiled in a heated Chinese intelligence narrative. The controversy involves Alice Huang, a Chinese businesswoman and former executive at Megaspeed International. US authorities reportedly suspected that she was connected with Chinese intelligence, although these allegations have not been officially confirmed.

This controversy has led the Nvidia board of directors to launch an independent investigation into reports concerning Jensen Huang. Nvidia has stated that it has no reason to believe that its national security information or trade secrets have been compromised.

In a broader perspective, NVDA stock has been impacted by this development, with NVDA shares falling 4.3% on November 9, erasing approximately $190B from the company’s market capitalization.

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Nvidia vs Alphabet Stock: Which Has More Upside in 2027?

The comparison is not simply about which company makes better AI chips. Alphabet has a wider business model comprising search, ads, subscriptions, and Google Cloud. Its Q3 2026 operating income increased 30% to $40.6B, while net income available to common stockholders stood at $26.2B.

Nvidia, on the other hand, is more exposed to spending on AI computing infrastructure. Its latest quarterly data shared how its data center revenue has hit $89B.

There are risks on both sides. Alphabet needs to turn growing TPU demand into a larger business while continuing to fund its AI infrastructure expansion. Nvidia must maintain its performance advantage as customers explore alternatives and develop their own chips. For investors, valuation also matters. A company can report stellar metrics but may still report weak stock returns if its shares already had higher expectations. For investors comparing the latest share prices, forward expected growth should also come first in the process.

Heading into 2027, Alphabet has an opportunity to work on its AI infrastructure expansion through fueling its TPU demand. Nvidia enters 2027 with growing competitive pressure as its rivals are now developing their own chips.

Goldman Sachs Price Target Nvidia vs. Google

Goldman Sachs has maintained a Buy rating on both Nvidia and Alphabet, with price targets of $300 and $385, respectively. These forecasts give investors a chance to compare as they explore a new phase of competition next year.

The NVDA $300 target was reiterated by Goldman Sachs on November 9, citing continued AI infrastructure demand. The bank further highlighted how data center capacity and AI infrastructure funding may help the stock gain more investor attention.

For Alphabet, Goldman Sachs lowered its price target to $385 from $435 on October 29 while maintaining its Buy rating. The bank’s outlook also considers Google’s AI and cloud expansion, alongside the impact of rising capital expenditure.

Based on the reported reference prices of $186.64 for Nvidia and $288.15 for Alphabet, Nvidia has an implied upside of approximately 60.7%, compared with Alphabet’s 33.6%. This suggests Nvidia has better potential for giving higher returns under these particular Goldman Sachs price targets. Although these calculations may differ based on changing market conditions and earnings data ahead.

The MCO ROI comparison tool also highlights how Nvidia and Alphabet stock have performed against each other in 2026. Between January 1 and November 10, 2026, Alphabet stock declined to 0.91x of its starting value, while Nvidia stock stood at 0.95x. This means a hypothetical $1,000 investment at the beginning of the period would now be worth approximately $910 in GOOG stock and $950 in NVDA stock, representing losses of $90 and $50, respectively. This comparison shows that Nvidia stock has performed relatively better than Google stock over the measured period, although both stocks have recorded declines.

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