Google Stock Soars as BofA Sees Potential for $390 Breakthrough
Alphabet's Google stock (NASDAQ: GOOGL) has been on a tear for three straight days, rising from $328 to $345. This surge marks the first time in nearly four months that the asset has seen growth since hitting its yearly high of $408 in mid-May.
The 4.1% increase over the last three days has brought about a fresh sense of optimism on Wall Street, with traders now looking to take an entry position as the equity is well-suited for a rally next. Alphabet's decision to raise AI spending from $180 billion to $205 billion for 2026 during its previous earnings call led several investors to give GOOGL a miss, awaiting returns that have yet to materialize.
However, Bank of America has reassured investors that Google stock stands a chance of breaching the $390 level. The bank noted that Google's global daily web visits have increased by 3% year-over-year to 2.8 billion in August, while ChatGPT's web traffic declined 5% year-over-year to 181 million. BofA highlighted that Alphabet is gaining an edge over its competitors in the broader AI segment.