Alphabet Stock Forecast: Trending As AI Leaders Shine

Alphabet’s Class A shares (GOOGL) have delivered a powerful run over the past year, with the stock rising 74.8% over the last 12 months and gaining 5.9% in the past month, even after a 1.5% dip in the last week. Wall Street’s analysts are firmly bullish, with a StrongBuy consensus and a 12‑month average price target of $358.48 versus the last closing price of $333.04. That implies meaningful upside for investors who believe Alphabet’s AI and cloud strategies can sustain current growth momentum over the coming year.

Analysts see Alphabet as one of the key beneficiaries of the AI boom, and the latest quarterly numbers have strengthened that view. Brian Pitz of BMO Capital Markets reiterated his Buy rating on 5 February 2026 and lifted his price target to $400, signaling significant upside from current levels. He highlighted a “very impressive” fourth quarter of 2025, with revenue beating expectations by 2% and EPS by 6.5%, driven by stronger‑than‑expected performance in core Search and Google Cloud, even as YouTube growth faced tough political advertising comparisons. Pitz emphasizes that Alphabet is executing on AI adoption at scale while sharply reducing the cost to serve, supporting a hefty 2026 capital expenditure plan in the $175–185 billion range. This N‑star analyst ranks #265 out of 11,984 on TipRanks, with a 69.25% success rate and a 16.7% average return per rating.

Deepak Mathivanan likewise reiterated his positive stance, maintaining a Buy rating and a $370 price target on 4 February 2026. He points to broad‑based acceleration across search, cloud, and capital spending as AI demand ramps. According to his analysis, Alphabet’s fourth‑quarter revenues and EBIT (excluding Waymo stock‑based compensation charges) came in 2% and 3% above Street estimates, with search revenue growth accelerating to 15% year over year ex‑FX, helped by increased usage from AI‑enhanced experiences. Cloud revenues grew 48% year over year, the fastest pace in more than four years, driven by strong uptake of enterprise AI products. Mathivanan notes that while the company’s 2026 capex guidance of $175–185 billion is far above prior expectations, the solid quarter boosts confidence that these investments can generate healthy returns as AI benefits compound. This N‑star analyst ranks #314 out of 11,984, with a 60.64% success rate and an average return of 17.8%.

Justin Post adds another strong vote of confidence, reiterating his Buy rating and $370 price objective on 5 February 2026, calling out the “Gemini halo effect” as a key driver. He reports that fourth‑quarter net revenue of $97.2 billion beat Street estimates of $95.2 billion, powered by 17% year‑over‑year growth in Search (versus Street’s 13%) and 48% growth in Cloud (versus 36% expected). Operating margins were temporarily pressured by a one‑time $2.1 billion Waymo charge, but would have reached 39% without it, and EPS of $2.82 topped expectations of $2.64. Post underscores that AI is driving more complex, longer, and follow‑up queries in search, creating new monetization opportunities, while the Gemini app, now at 750 million monthly active users, offers future advertising upside. He also highlights Google Cloud’s 55% quarter‑over‑quarter backlog growth to $240 billion and the company’s aggressive $175–185 billion capex plan as evidence of strong cloud demand and high‑return investment opportunities. Post ranks #54 out of 11,984 on TipRanks, with a 68.65% success rate and a 25.0% average return per rating.

Across these views, a common thread emerges: Alphabet is seen as a clear AI leader, integrating its Gemini models throughout search and cloud, and leveraging that technology to drive both user engagement and enterprise spending. Search growth has re‑accelerated, cloud demand is surging, and the massive capex ramp is framed not as a risk but as a necessary step to meet AI‑driven demand and unlock further growth. With the stock already up strongly over the past year but still trading below the average and high‑end analyst targets, investors are being told by top‑ranked Wall Street voices that the AI story at Alphabet is still in an early, potentially rewarding phase. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.