Alphabet’s Google stock (GOOGL) surged to a yearly high of $397 this week following strong Q1 earnings that exceeded expectations. According to Citizens Research financial analyst Andrew Boone, the stock remains undervalued at $388, with a new street-high price target set at $515. Boone highlighted the company’s AI investments and vertical integration with custom chips as key drivers for the bullish outlook.
Alphabet Inc.’s stock reached a yearly high of $397 on Tuesday, opening Wednesday’s trading session at $388. The rally represents a significant climb from a March low of $273, occurring over less than two months.
This surge followed the company’s latest earnings call, where it surpassed all market expectations. Institutional funds reportedly accumulated shares heavily during this period, securing substantial profits.
The recent confidence stems from Alphabet’s record revenues, which demonstrated that its capital expenditures on artificial intelligence are delivering results. Citizens Research financial analyst Andrew Boone issued a new, bullish signal for the equity.
Boone set a street-high price target of $515 for Google stock, assigning it a buy rating. He argued that $388 is still cheap and significantly undervalued, emphasizing the stock would outperform competitors in AI.
The analyst pointed to Google’s vertical integration of its custom TPU 8-series chips, which operate at a lower cost than peers relying on third-party hardware. This technological advantage has provided a substantial boost to its Gemini AI models.
Boone cited first-quarter earnings of $5.11 per share, which crushed estimates of $2.63, as a key valuation metric. He also noted the stock trades at roughly 29 times consensus 2026 earnings and highlighted a $460 billion Cloud backlog.
If the $515 price target proves accurate, GOOGL would appreciate by approximately 33 percent from its current level. This potential gain underscores the analyst’s view of the stock’s current valuation.
