Alphabet Shares Surge on Upgraded Outlook and AI Infrastructure Focus

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Alphabet Inc., the parent company of Google, is once again approaching its record highs, moving past recent investor concerns. This renewed confidence stems from a significant reassessment by investment bank Raymond James, which has shifted the narrative from fears over search engine competition to a focus on the company's vast artificial intelligence infrastructure potential.

The stock's momentum is supported by both analyst upgrades and operational expansion. Having gained nearly 74% over the past twelve months, the equity remains a standout performer. It is currently trading just below its 52-week high of $335.97. Furthermore, the corporation has crossed a historic valuation threshold with a market capitalization exceeding $4 trillion.

A key near-term catalyst for investors is imminent. Alphabet is scheduled to release its fourth-quarter 2025 financial results after the market closes on February 4, 2026. Current market consensus anticipates revenue of approximately $111.24 billion and earnings per share of $2.59.

Analyst Foresees AI "Supercycle," Lifts Price Target Dramatically

The primary driver behind the recent upward move was an upgrade to "Strong Buy" by Raymond James analyst Josh Beck. He significantly raised his price target on the stock from $315 to $400. Based on Thursday's closing price of $330.57, this new target implies a further upside potential of over 20%.

Beck's revised outlook is grounded in a changed perspective on Google Cloud Platform (GCP). He forecasts revenue growth of 44% for this segment in 2026 and 36% in 2027—figures that sit well above current market consensus. According to his analysis, Alphabet is entering the monetization phase of an "AI infrastructure supercycle."

Detailed expectations include:
* AI Chips: Revenue from Tensor Processing Units (TPUs) is projected to reach an annual run rate of $25 billion by the end of 2027.
* Core Search Business: Contrary to existential fears, the company's foundational search business is expected to maintain stable growth of 13% in the coming years.

Waymo Accelerates Expansion with Miami Launch

Adding to the positive Wall Street sentiment, Alphabet's subsidiary Waymo reported operational progress. The autonomous taxi service officially launched in Miami on January 22. With an initial service area covering 60 square miles and approximately 10,000 pre-registrations, the move signals an acceleration in scaling self-driving technology beyond its established West Coast markets.