Amazon (AMZN) and Alphabet (GOOGL), two of the biggest names in cloud and AI, saw their price targets raised by KeyBanc, reflecting improving trends across their core businesses. The firm’s top analyst Justin Patterson lifted Amazon’s price target to $325 (from $285) and Alphabet’s to $380 (from $370), while maintaining Overweight ratings on both stocks. Patterson highlighted that their investments in AI and cloud infrastructure are finally starting to pay off.
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For Amazon, Patterson sees AWS as the main growth driver, with cloud revenue expected to rise by around 30% on the back of capacity expansion and new client wins.
At the same time, he points to improving momentum in advertising and grocery, where AI tools like Rufus and initiatives such as Project Leo could add new revenue streams. However, he cautions that near-term pressures remain, as higher fuel costs and ongoing investments may weigh on operating income in the first half of 2026.
Still, looking ahead, Patterson expects earnings per share to approach $10 by 2027, which supports his higher price target.
Alphabet’s Cloud Momentum Stands Out
Alphabet’s cloud business is another key driver, with Patterson seeing strong growth in Google Cloud. He believes the market is underestimating this momentum, as his forecasts for Google Cloud revenue in 2026 and 2027 are now 8% to 15% above the market consensus.
At the same time, the Search business remains steady, growing at a low double-digit pace, which adds to overall stability. As a result, he expects earnings per share to approach $14 by 2027 and sees multiple ways for Alphabet to monetize AI, with cloud playing a central role in long-term growth.
Which Tech Giant Is the Better Buy Right Now?
Turning to Wall Street, both stocks carry strong support from analysts. Alphabet has a Strong Buy consensus, with an average price target of $385.97, implying about 14% upside from current levels.
Similarly, Amazon also holds a Strong Buy rating, with an average price target of $284.77, suggesting roughly 15% upside.
