Investment bank Goldman Sachs reiterated its bullish $400 price target for Alphabet’s Class A stock ahead of the company’s earnings announcement. The bank described the company as having a “dual under-appreciated narrative,” citing expectations for AI monetization and recent product launches announced at the Cloud Next 2026 event. Alphabet’s stock was trading near $350.
Alphabet is scheduled to publish its earnings after the closing bell, which will influence the direction of its Class A stock listed on NASDAQ: GOOGL. The stock recently crossed $352 but opened the trading session at $350.
Leading investment bank Goldman Sachs maintains a bullish outlook, predicting the stock will reach $400. The bank has consistently placed a ‘buy’ rating on the stock since September 2021.
The bank stated that Alphabet remains under-appreciated despite its growth, partly due to capital expenditures on AI. It explained the company would scale its computing business and monetize its platform and application layers.
Goldman Sachs increased its confidence following Alphabet’s Cloud Next 2026 event in Las Vegas, where a series of launches were announced. The company revealed new products and services across its infrastructure, including data management, security, and Gemini Enterprise.
These launches and updates are set to take place after June. Goldman Sachs described Google stock as a “dual under-appreciated narrative,” arguing the market still underestimates its AI capabilities.
The bank cited the upcoming announcement of 8th-generation custom TPU chips named ‘TPU 8t’ as a key factor. These chips are optimized for training and can scale up to 9,600 TPUs with substantial memory in a single superpod.
This configuration provides three times the processing power of the previous ‘Ironwood’ generation. Goldman Sachs identified these technological and business developments as reasons the stock could reach its $400 target.
