JPMorgan Raises Alphabet Price Target to $460

JPMorgan analyst Doug Anmuth raised the price target on Alphabet (NASDAQ: GOOGL) to $460.00 (from $395.00) while maintaining an Overweight rating.

“Google’s full-stack AI benefits were on display in 1Q, with growth accelerating across Search (+19%), Cloud (+63%), and total revenue +22% (+19% FXHN) to $109.9B.

We believe Google is generating clear, measurable returns on its AI investments as Cloud backlog nearly doubled sequentially to $462B with AI Solutions now the primary growth driver, Search queries hit an all-time high as AI experiences expand the addressable market, and paid subscriptions reached 350M driven by strong demand for consumer AI plans.

The virtuous cycle of underlying silicon, model improvement, user engagement, and monetization continues to compound, with Gemini now processing 16B+ tokens per minute (+60% Q/Q) and AI-enabled campaigns capturing a growing share of Search spend.

Continued capital intensity is required, w/management signaling another significant increase in capex next year—we now project 2027 capex +54% Y/Y to $293B—which should continue to pressure N-T FCF.

That said, management remains committed to ROI-driven discipline and emphasized that investments in technical infrastructure are delivering strong growth in both Cloud and Services.

GOOG/L remains our top overall pick, and we remain positive on the company’s AI leadership, differentiated full AI stack, and ability to drive multi-year revenue and margin accretion across Cloud and Services.

We reiterate our Overweight rating, and our $460 Dec ‘26 PT is based on 32x our ’27E GAAP EPS of $14.31.”

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