Analysts Boost Outlook for Alphabet as AI Momentum Builds

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Financial analysts from two major firms have significantly raised their price targets for Alphabet Inc., with JPMorgan identifying the Google parent company as a top artificial intelligence pick for 2026. This bullish sentiment emerges even as the stock closed slightly lower on Friday, with experts seeing potential upside of up to 24%. The optimistic assessments unfold alongside a separate legal development involving the company's assets in France.

Alphabet's Class A shares concluded Friday's trading session at $309.29, marking a decline of just over one percent. However, the market's focus shifted to substantive analyst commentary released the same day. JPMorgan Chase & Co. strengthened its position, elevating its price objective from $340 to $385 and reaffirming its "Overweight" recommendation. In his analysis, Doug Anmuth cited an accelerating growth trajectory within Google Cloud, which expanded by 34% last quarter. JPMorgan's projections are for this segment to achieve growth exceeding 40% by 2026.

In a parallel move, the investment firm TD Cowen increased its own target to $350. Its research team highlighted the robust performance of Google Search and the rapid adoption of the Gemini AI model. Analyst John Blackledge forecasts that Gemini will reach approximately 850 million monthly active users by the end of 2025—a figure substantially higher than prior estimates.

Legal Proceeding in France

As the investment thesis gains strength, a separate legal matter in France has drawn attention. A French court enforcement officer has directed the provisional freezing of roughly $129 million (€110 million) worth of Google's assets within the country.

This action stems from a dispute with the bankruptcy administrator of Google's former Russian subsidiary. The measure enforces arbitration rulings from Moscow related to an allegedly unlawful dividend payment of around 10 billion rubles from 2021. For a corporation with a market capitalization of $3.78 trillion, the financial impact of this freeze is considered negligible. The order is provisional, and Google has stated its intention to pursue legal appeals.

Robust Performance and Favorable Valuation

Alphabet's stock has appreciated by approximately 65% so far in 2025. Early concerns that AI might erode margins in the core search business have not materialized. Conversely, the company is leveraging its AI infrastructure—including its Tensor Processing Units (TPUs) and the Gemini platform—to unlock new revenue streams. Bulls in the market view the stock's current valuation, at about 30 times estimated 2027 earnings, as attractive relative to other hyperscale cloud competitors.

From a technical perspective, the shares are trading near their 52-week high of $328.83 and remain well above the 200-day moving average. A central question for upcoming quarters is the pace at which Alphabet can monetize its base of over 650 million Gemini users. The prevailing consensus suggests the company will likely avoid the "AI fatigue" that has affected some hardware-focused stocks.