Analysts are beginning to hail tech giant Google’s (GOOGL) Google Cloud Next 2026 conference in Las Vegas that wraps up today. UBS noted that insights shared at the summit “further prove that demand is not just Anthropic and OpenAI.”
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Trade NVDA with leverageAt the event, Google unveiled a slew of AI-focused partnerships, including an AI infrastructure deal with chipmaking giant Nvidia (NVDA), a new generation of its customer Tensor Processing Units (TPUs), and two brand-new chips being designed in partnership with semiconductor company Marvell (MRVL).
UBS Flags 40% Growth in Gemini’s Enterprise Users
Reacting to these updates, UBS analyst Stephen Ju contended that the summit should help to douse market worries about Google’s ability to generate returns for investors from its expansive spending on generative AI.
Ju noted that presentations at the summit showed that enterprise monthly active users (MAU) of Google’s AI assistant Gemini and related products surged 40% year-over-year by the end of Google’s first quarter of fiscal 2026. The quarter ended on March 31.
The analyst also pointed to practical demonstrations at the conference of how various companies were deploying various Google products.
‘Google Has Caught Up’
Ju believes that these should offer encouraging signs that make it easier to back multiyear capex plans and reinforce that AI demand extends beyond just Anthropic and OpenAI.
“A year ago, investors were questioning whether Google was lagging on GenAI productization – and this event shows that Google has caught up,” the UBS research noted.
He further pointed to new releases targeted at meeting the requirements of early users of AI products, the next-generation TPUs being planned, and the rollout of new agentic AI tools. He sees the new TPUs as offering better performance at the same price.
Despite these points, Ju maintained both his Hold rating on GOOGL and kept the $375 price target, predicting about 11% upside in the months ahead. The equity researcher believes that most of these benefits are already priced into Alphabet’s shares.
By contrast, Citizens’ Andrew Boone reaffirmed his Buy rating on GOOGL and set a price target of $385, implying roughly 14% upside. “Our key takeaway is that Google is creating the operating environment to support the development and deployment of agents across enterprises,” Boone noted.
Is GOOGL a Good Buy Right Now?
Across Wall Street, Alphabet’s shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 26 Buys and five Holds assigned by 31 analysts over the past three months.
In addition, the average GOOGL price target of $387.68 indicates about 14% upside from current trading levels.
