Particle.news
Download on the App Store

Alphabet Wins Street-High $400 Target on AI Momentum

Optimism centers on Gemini uptake with TPU-driven cost gains.

Overview

  • Pivotal Research raised Alphabet’s price target to $400, calling the company “winning everywhere” across Search, Gemini and YouTube.
  • Cantor Fitzgerald reiterated a Neutral rating with a $310 target, citing near-term valuation stretch despite expected benefits from Gemini 3 in 2026.
  • Analyst sentiment has turned broadly positive, with 84% rating the stock a Buy and the average target up to about $332 from $211 a year ago.
  • Valuation has expanded as investors price in AI growth, with targets implying roughly 30× estimated 2026 earnings after a strong year-to-date rally.
  • Coverage highlights Alphabet’s custom TPUs as a potential cost edge for AI workloads and notes growing Gemini distribution, with reports of Apple paying for access and some searches now routing through Gemini on mobile.