Alphabet’s artificial intelligence capabilities will lead the stock to further gains, according to Cantor Fitzgerald. The firm upgraded the “Magnificent Seven” titan to overweight from neutral. Analyst Deepak Mathivanan also lifted his price target to $370 from $310, which implies 15% upside. “After strong outperformance last year, shares are now trading above the medium-term range, and expectations are high in the near-term, but we expect premium valuation to stay intact while top-line growth accelerates,” the analyst wrote. Shares of Alphabet soared 65% in 2025, as the company’s improvements to Gemini and other AI capabilities were hailed by investors. GOOGL 1Y mountain GOOGL 1Y chart Going forward, Mathivanan said an easing regulatory environment and Alphabet’s artificial intelligence capabilities through Gemini can push the stock higher. “We believe the technological advantages of the Gemini assistant app — powered by Google’s ‘grounding’ assets — vs. ChatGPT (powered by Bing and partner integrations) are underappreciated,” he said. “GOOGL, arguably, has the strongest footprint across several layers in the AI tech stack, and the company’s decade-long investments have enabled deep competitive moats.” The company is also expected to see revenue acceleration in other areas, such as search. Deeper integration of AI overviews and AI mode have already contributed to growing query volumes. Mathivanan also sees further revenue growth within the company’s cloud business. “Over the next few years, as consumer applications and enterprise solutions become more Agentic, GOOGL’s standards are likely to be widely adopted for building and maintaining agents,” Mathivanan said. Alphabet shares traded more than 1% higher following the upgrade.
