Alphabet’s Class A stock (GOOGL) has been on a strong run, with the share price up 5.57% over the last week, 7.67% over the past month, and a striking 74.42% over the last 12 months. Over the next year, Wall Street’s analysts remain firmly optimistic: the 12‑month average price target stands at $337.87 versus a last closing price of $331.86, and the overall analyst consensus is rated as a StrongBuy.
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Behind this upbeat outlook is veteran analyst Justin Post of BofA, who reiterated his Buy rating on Alphabet on January 13, 2026, and set a price objective of $370.00. That target implies further upside from current levels and supports the broader Street view that Alphabet still has room to climb, even after its substantial gains in 2025. Post notes that Alphabet outperformed both the NASDAQ and its FANG peers last year, with the stock up 65% year over year, driven largely by improved sentiment around artificial intelligence and a favorable decision related to search remedies.
Post’s report frames Alphabet as one of the top plays for AI exposure in 2026. He highlights Google’s leading position across key AI pillars: its Gemini large language model, in‑house TPU (Tensor Processing Unit) infrastructure, massive consumer reach via Search, and growing enterprise adoption through Cloud and Workspace. He argues that as new AI‑focused IPOs come to market and more high‑profile AI deals are announced, investors could increasingly recognize the value of Alphabet’s differentiated AI asset base, potentially supporting further gains in the stock.
The analyst also points to several specific potential positives for Alphabet’s share price. These include better monetization of traffic as search shifts toward AI‑generated query results, upside in Google Cloud growth supported by Gemini and TPU differentiation, emerging opportunities in an “Agentic AI” ecosystem, and improving commercial traction for both TPUs and the Other Bets portfolio. Together, these could justify a valuation premium that remains elevated versus Alphabet’s historical averages, even as Street forecasts call for solid EPS growth through 2027.
Still, Post cautions that the risk/reward profile, while balanced, is not without challenges. Key risks include intensifying search competition, high‑profile rival product launches that could sway AI sentiment, rising AI costs and potential overcapacity in the cloud sector pressuring margins, slowing ad growth that could weigh on valuation, and an already elevated free‑cash‑flow multiple. Even so, with the stock trading around 25 times Street 2027 GAAP EPS (and roughly 21 times for the core business on a sum‑of‑the‑parts basis), he believes Alphabet remains well positioned as a core AI exposure for investors. Justin Post is a highly rated analyst, ranking 54 out of 11,984 on TipRanks, with a 68.65% success rate and an average return of 25.00% per rating. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.