Google’s Alphabet stock (NASDAQ: GOOG) had a rough first quarter of 2026 after sliding nearly 9%. A steep decline occurred at the end of March due to concerns about AI spending, which affected all tech stocks. GOOG started Q2 of 2026 on a strong note, as it rose from $271 to $294.90 in three days. The surge in value came on Wednesday, even after Trump’s aggressive tone against Iran. The President hinted at more strikes on the country for the next two to three weeks.
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Google’s Alphabet Stock Could Hit $340
Investment research firm Morningstar predicts that Google’s Alphabet stock could reach the $340 level next. They pointed out the company’s cloud annual business revenues, which is 16% of the firm’s entire lineup. The cloud business reached $71 billion during the last quarter of 2025, which is a 48% year-over-year jump. This signals the expanding revenue stream from the cloud and AI services.
“We maintain our $340 fair value estimate for wide-moat Alphabet and continue to view the firm as a clear leader in AI. We view them (Google stock) as fairly valued,” read their price prediction. The price prediction indicates that GOOG could climb above the $300 mark next and head toward $340. That would be a return on investment (ROI) of approximately 16% from its current price of $294. An investment of $1,000 could turn into $1,600 if the price prediction turns out to be accurate.
Google stock remains under the lens for its intense capital spending on building the AI infrastructure. The tech titan is spending between $175 billion and $185 billion to develop the next-gen technology. The spending has raised concerns in the investor community, leading to fears that it could lead to losses. The entire tech sector is now under the scanner for its AI expenditure. However, how they maneuver the challenges will decide the next step in their finances.