Wells Fargo raised the firm’s price target on Alphabet (GOOG) (GOOGL) to $187 from $184 and keeps an Equal Weight rating on the shares. The firm expects Google Cloud to see meaningful tailwind in FY26 from OpenAI and Anthropic compute workloads with revenue contribution accelerating to +6pts from neutral in 2025. Wells estimates Anthropic was headwind to Google Cloud growth in the first half of 2025, as training workload mix shifted to AWS (AMZN) from GCP in 2025. This reinforces the firm’s view that Google Cloud’s Q2 outperformance was driven by core strength, supportive of industry growth. It expects Anthropic headwinds to yield to OpenAI tailwinds in the second half of 2025 and continue into 2026.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on GOOGL:
- Top Analysts Expect Apple to Report In-Line Q3 Revenue, Say ‘Sentiment Is Negative’ on AAPL Stock
- Google’s (GOOGL) DeepMind Introduces AI Model for Ancient Roman Inscriptions
- Don’t Trash Tesla (TSLA) as it Thunders Towards $10T Market Cap
- Apple (AAPL) Finally Returns to Growth in China’s Smartphone Market
- AMZN, GOOGL, META: Morgan Stanley Picks the Biggest Beneficiary of Trump’s Tax Bill