Investing.com – Truist Securities has raised its price target on stock to $385.00 from $350.00 while maintaining a Buy rating. The new target represents further upside potential for the tech giant, which is already trading near its 52-week high of $349 and has delivered an impressive 74.75% return over the past year.

The firm cited Alphabet’s stronger fourth-quarter results, which reflected both a healthy advertising market and accelerating growth across Search and Cloud segments, an achievement it called « impressive » given the company’s scale. This performance aligns with Alphabet’s solid 13.4% year-over-year revenue growth, which reached $385.48 billion in the last twelve months.

Truist Securities noted that Search performance suggests generative AI is expanding the Search total addressable market (TAM), with Google remaining « the monetization engine of choice » in what the firm described as Google’s « war to lose. »

The analyst report highlighted that higher user engagement and ad monetization in Search, along with strength in Cloud, are being fueled by AI integration and AI workloads.

While Truist acknowledged Alphabet’s higher capital expenditure guidance for 2026, the firm believes the increased spending is justified as long as the company continues to grow revenue and profitability while supporting share buybacks and dividends.

In other recent news, Alphabet’s financial performance has garnered attention with significant developments. The company’s cloud segment reported a remarkable 48% year-over-year growth, surpassing Jefferies’ expectations of 36% and showing acceleration from the previous quarter. Alphabet’s capital expenditure forecast for FY26 is set between $175-185 billion, indicating a substantial increase from FY25’s $91 billion. Goldman Sachs has raised its price target for Alphabet to $400, attributing this to strong cloud growth, while also noting a slowdown in YouTube Ads revenue growth. Meanwhile, Citizens has reiterated its Market Outperform rating with a price target of $385, highlighting the impact of artificial intelligence on Google’s operations. Bernstein has also increased its price target to $335, citing Alphabet as a stable option for investors interested in AI and advertising. In related industry news, Hayete Gallot from Google’s cloud unit will take over as Microsoft’s new security chief, replacing Charlie Bell. Bell will transition to a new role focused on engineering quality, maintaining close collaboration with Microsoft’s leadership.

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