A prominent Wall Street firm has issued a significant vote of confidence in Alphabet Inc. Piper Sandler raised its price target for the Google parent company to $365 from $330, establishing a new Street-high projection. The upgrade arrives as Alphabet bolsters its artificial intelligence leadership team with the appointment of a new chief technologist for AI infrastructure. Despite these developments, the company’s shares traded marginally lower on Thursday.
Valuation and Competitive Positioning
Even with the recent optimism, Alphabet’s valuation remains compelling relative to its mega-cap technology peers. Based on forward earnings estimates for 2026, the stock trades at a price-to-earnings multiple of approximately 21, positioning it as one of the more reasonably valued members of the so-called “Magnificent Seven.” This valuation context is notable, as evidenced by Oracle’s recent post-market decline of over 11% following its quarterly report. That selloff suggests investors are applying heightened scrutiny to tech sector valuations.
Strategic AI Investments Intensify
The analyst’s bullish outlook is underpinned by Alphabet’s aggressive and structured investments in artificial intelligence. The company has named Amin Vahdat as its new Chief Technologist for AI Infrastructure, placing an experienced expert at the helm of a division expected to account for capital expenditures exceeding $90 billion in 2025. Vahdat’s role will be to ensure the efficiency of these substantial investments—a critical function given that hyperscalers including Google, Microsoft, and Amazon are collectively projected to spend around $400 billion on AI infrastructure.
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In a parallel strategic move, Alphabet has joined the newly formed “Agentic AI Foundation,” an initiative under the Linux Foundation. The coalition, which includes OpenAI, Microsoft, and Amazon Web Services (AWS), aims to establish standards for agentic AI systems. This collaboration could potentially unlock new revenue streams for Google Cloud. Notably, Meta Platforms is absent from this alliance, apparently pursuing a more independent strategy with its “Avocado” model.
Regulatory and Operational Headwinds Persist
The company continues to navigate significant challenges. Reports indicate Alphabet faces a substantial EU antitrust fine by the end of 2025 related to its app store rules. Furthermore, its autonomous vehicle unit, Waymo, has initiated a recall affecting 3,067 vehicles—an operational setback within Alphabet’s “Other Bets” portfolio.
Technical and Long-Term Trajectory
From a chart perspective, Alphabet’s stock is consolidating just below its record highs. A sustained breakout above the $321 level could pave the way toward the new analyst target of $365, with support around $313 having held thus far. Looking further ahead, some market researchers believe Alphabet has a path toward a $5 trillion market capitalization by 2028, driven primarily by the monetization of AI across its core Search and YouTube platforms.
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