Alphabet upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded Alphabet (GOOG) (GOOGL) to Overweight from Equal Weight with a price target of $387, up from $354. The company has a leadership position in the “three key traits” of an AI winner: customer data, distribution, and compute capacity, the analyst tells investors in a research note. Wells says its capacity analysis confirms Alphabet has an opportunity to exploit data and distribution advantages for consumer and enterprise AI products. Project Google expands the company’s compute capacity to 35GW by 2028 from 15GW at the end of 2025, extending its capacity lead relative to the hyperscaler peer group, contends Wells. The firm says “capacity is king.”