Wells Fargo raised its price target on Alphabet (NASDAQ: GOOGL) from $387 to $397 and kept an “Overweight” rating on the tech legend on Friday, March 27.
Most notably, the financial services company emphasized Alphabet’s Tensor Processing Unit (TPU) licensing and Wiz acquisition, arguing they could add 4-7% and 6-14% to Google Cloud Platform revenue and operating income by 2027, respectively.
The new GOOGL share price target implies roughly a 41% gain from the last close at $280, and analyst Ken Gawrelski also notes that the Anthropic TPU partnership alone could drive billions in high-margin revenue, potentially reaching $2.5 billion in 2026 and $7.5 billion in 2027.
Morgan Stanley gives Google stock a thumbs up on Waymo growth
On Thursday, March 26, Morgan Stanley also expressed optimism regarding Google stock, primarily due to Waymo. Specifically, the investment bank maintained an “Overweight” rating, with a $330 price target, citing stronger-than-expected scaling metrics and a favorable industry outlook.
Waymo, Google’s self-driving tech arm, is indeed rapidly scaling its autonomous ride service, now reporetedly completing roughly 500,000 weekly trips. That’s a fivefold increase since August 2024, and CEO Sundar Pichai has repeatedly highlighted the service as a core area of Alphabet’s artificial intelligence (AI) strategy.
“New Waymo data cause us to raise 2028 miles and revenue by 20% and 6% as Waymo is scaling faster,” the note read.
Overall, the firm projects the trips will grow at an 84% CAGR from 2025 to 2032, reaching 1.1 billion by 2032 and pushing revenue to roughly $20 billion.
Google stock price target
Overall, Wall Street considers Google stock a “Strong Buy,” expecting the price to rally 35.97% over the next twelve months and eventually trade at $376.57, as per the average calculated by Tip Ranks.
At face value, then, the technology giant appears to be in a very strong position, pushing the AI envelope and upping the ante in its autonomous ride-hail business.
However, some analysts have argued the stock faces mounting pressure from multiple angles following its daily crash on March 24, the biggest since June, meaning that its future is not as clear as it might first appear.
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