Alphabet’s Google stock (NASDAQ: GOOG) opened Friday’s trading session at $333. The search engine giant has had a rough start in July, down nearly 5.6% in a month. The price correction comes after Alphabet announced in its latest Q2 earnings call that it is raising its capital expenditure to build its AI infrastructure from $180 billion to $205 billion in 2026. GOOG crashed 7% the same day, despite delivering robust revenues in the earnings call, as the increase in capex got Wall Street worried.
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Google Stock New Price Target: Freedom Capital Markets Goes Bullish on GOOG
Leading investment banking firm Freedom Capital Markets upgraded its Google stock price prediction with a bigger target. Saken Ismailov, the Equity Research Analyst at the banking firm, gave GOOG a buy rating last week. The firm predicts that Google stock will reach a new price target of $400 next. That’s a profit of $67 per share if investors take an entry position in the equity today at $333.
It would also be an uptick and return on investment (ROI) of approximately 20% from its current price. Therefore, an investment of $1,000 could turn into $1,200 if the price prediction turns out to be accurate. This makes Google stock a must-watch equity as the upside potential remains immense. An investment even at the $330 level could prove to be rewarding to traders.
The analyst highlighted Alphabet’s dominance in the AI sector as the primary reason for the uptick. The company is pulling all strings to be ahead of the curve in building the next-gen technology. From producing custom-made AI chips and optimizing Gemini models to building Cloud infrastructure, Alphabet is leading in the industry. The next decade could change its fortunes, as the AI sector enters the mainstream segment. An investment made now could reap the fruits after 2030.