Bank of America Raises Alphabet Target to $370, Bullish on AI and Cloud Growth

Bank of America has raised its price target for Alphabet from $335 to $370, signaling strong confidence in the tech giant’s future trajectory. The upgrade is fueled by Alphabet’s leadership in AI innovation and the accelerating momentum in its cloud computing division.

Three Key Growth Drivers

• AI Integration: Deepening AI capabilities across Search, YouTube, and Workspace are enhancing user engagement and ad performance
• Cloud Expansion: Enterprise adoption of Google Cloud is rising, with AI-powered tools driving new revenue streams
• Operational Efficiency: Ongoing cost discipline and workforce optimization have improved margins since 2023

Analysts highlight that generative AI is now playing a central role in ad targeting and content recommendation, boosting monetization efficiency. Additionally, YouTube Shorts is gaining traction in ad revenue generation. Despite competitive pressures, Alphabet’s technological edge in core areas remains robust, positioning it well for sustained growth.