Alphabet Price Target Soars to $485 on AI-Driven Growth Prospects

Tigress Financial Partners analyst Ivan Feinseth has reaffirmed his 'Strong Buy' rating for Alphabet (GOOGL) stock and set a new price target of $485, representing a potential upside of around 39.6% from the current level.

The bullish thesis centers on Alphabet's massive investments in artificial intelligence (AI), which Feinseth believes will drive growth across its core businesses, particularly Search, Cloud, and Gemini.

Feinseth points out that AI has become a key driver of monetization for Alphabet, with the company leveraging its distribution across multiple platforms to capture revenue streams from subscriptions, APIs, enterprise software, agents, and productivity products.

The analyst sees significant potential in Google Cloud's emergence as an important AI engine, with revenue surging 82% year-over-year to $24.8 billion, while operating income more than tripled to $8.8 billion and margins reached 35.6%.