JP Morgan lifts its price target on Alphabet as AI strategy payoffs draw bullish attention
JP Morgan has upgraded its outlook on Alphabet (NASDAQ: GOOGL), assigning the stock a “strong buy” and nudging its 12‑month price target up to $395 from $385. The firm’s US internet equity head, Douglas Anmuth, says the move reflects growing confidence in Alphabet’s ability to monetize and control costs around its AI investments.
Alphabet opened Thursday at $308.70 and remains rangebound amid broader market volatility tied to the Iran‑Israel conflict, which has restrained rallies across major equities. JP Morgan sees upside—about 38% from the current price—to reach the new $395 target, a $10 increase (roughly 2.5%) versus its prior forecast. At that level, a hypothetical $1,000 investment today would be worth about $1,380 if the target is met.
The bank points to Alphabet’s strategy of offsetting hefty AI spending by renting out AI infrastructure—an approach likened to Nvidia’s model—which both reduces costs and creates an additional revenue stream. That combination of operational discipline and AI leadership underpins JP Morgan’s bullish stance. Other firms, including TipRanks, have also given Alphabet a “strong buy” rating.
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