Alphabet Class C, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a $328.00 price target.
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Saiyi He has given his Buy rating due to a combination of factors including Alphabet’s strong financial performance and strategic investments in AI and cloud technologies. The company’s third-quarter results for 2025 exceeded expectations, with total revenue increasing by 16% year-over-year, driven largely by the impressive growth of Google Cloud, which saw an 85% year-over-year increase in earnings. This robust performance is attributed to enhanced operational efficiency and a significant demand for AI compute, which has also led to a substantial increase in the cloud backlog.
Furthermore, Alphabet’s investments in AI are beginning to yield positive results, particularly in its core search and cloud businesses. The introduction of AI Overviews has significantly boosted user engagement, while AI-powered search ads have become a rapidly growing product. These advancements, along with a raised capital expenditure guidance and an improved operating margin, underscore the company’s strong growth outlook. Consequently, Saiyi He has raised the target price for Alphabet’s stock, reflecting confidence in the company’s future performance.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $335.00 price target.