Google’s Alphabet stock (NASDAQ: GOOGL) reached a yearly high of $397 on Tuesday and opened Wednesday’s bell at $388. GOOGL has been surging since the end of March, going from a low of $273 to a high of $397 in less than two months. The unprecedented rally came on the heels of Alphabet’s earnings call, where it beat all market expectations.
Several institutional funds relentlessly accumulated Google stock, earning massive profits in a month. The tech titan is now aiming to breach the $400 level and enter into a new territory. The confidence in GOOGL stems from Alphabet’s record revenues call, where it showed investors that capex on AI is delivering the results and could grow further by the end of the decade.
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The latest bullish signal for Google stock comes fromCitizens Research financial analyst Andrew Boone. The prediction is a street-high price target of $515, and the analyst argued that $388 is still cheap and significantly undervalued. Boone gave GOOGL a buy rating and emphasized that it would outrun its competitors in the AI sector.
He raised the stock target to $515, stressing that Google’s vertical integration of its own custom TPU 8-series chips comes at a lower cost compared to its peers, who mostly rely on third-party hardware to run and deploy their AI models. Alphabet has mostly taken care of this segment, bringing its own powerful chip and also giving Gemini a massive boost.
Boone called Google stock cheap at $388 because its Q1 earnings reached $5.11 EPS, crushing the $2.63 estimates. He also explained that it is trading at roughly 29x consensus 2026 earnings. The $460 billion Cloud backlog is also among the reasons to be bullish on the equity.
If Boone’s price prediction turns out to be accurate, Google stock would rise by approximately 33% in value. In conclusion, an investment of $1,000 could turn into $1,330 if the price prediction for GOOGL turns out to be accurate.
Source: Watcher Guru
