Alphabet Class A Rides AI Wave Toward New Upside

Alphabet Class A ( (GOOGL) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Alphabet Class A is drawing fresh bullish attention on Wall Street as analysts increasingly view artificial intelligence as a key growth engine across its business. TD Cowen’s John Blackledge recently lifted his price target to $375 ahead of Alphabet’s Q1 2026 earnings on April 29, citing accelerating strength in Google Cloud and resilient Search advertising.

Cloud is the main growth driver, with revenue expected to climb about 50% year-over-year, fueled by rising enterprise demand for AI tools and larger contracts. Search also remains robust following the rollout of Gemini 3, with features like AI Overviews and AI Mode boosting user engagement and making AI a “material driver” of core search activity.

Alphabet Class A is also expanding strategically through investments such as its $350 million minority stake in Walmart-owned Flipkart, valued at roughly $37 billion in 2024 and eyeing a Mumbai IPO by 2027. This gives Alphabet more exposure to India’s fast-growing digital and e‑commerce markets ahead of Flipkart’s planned listing.

In another AI push, Google is in talks with the U.S. Department of Defense to bring Gemini models into classified settings, a potential turning point from its earlier reluctance to work on military projects. A deal could significantly expand Alphabet’s role as a government AI and cloud contractor, while the company seeks safeguards against uses like mass surveillance and fully autonomous weapons.

Despite heavy AI investment, Alphabet Class A still trades at about 28.3x earnings ex‑cash, which some analysts view as reasonable given its ad dominance, fast-growing Cloud and emerging bets such as Waymo. Wall Street sentiment is strongly positive, with a Strong Buy consensus and an average price target near $386 implying mid‑teens percentage upside from current levels.