Back to News
Feb 5, 2026 8:50 AM

Alphabet Stock Gets $400 Forecast From Goldman As AI Bets Start To Pay Off

Alphabet Inc. (NASDAQ:GOOGL) closed 2025 with a quarter that reinforced its position as the most deeply integrated AI platform across consumer and enterprise computing, according to Goldman Sachs.

In a note shared on Thursday, the firm analyst Eric Sheridan lifted Alphabet’s 12-month price target to $400, up from $375, citing accelerating growth in Google Cloud, a rebound in search, and disciplined investment amid the AI race.

That still implies a 20% upside compared to Wednesday’s closing price.

“This quarterly report continued a trend that started in late summer 2025 with Alphabet demonstrating continued operating momentum in its core business while scaling its consumer and enterprise AI efforts,” Sheridan wrote.

Google Cloud: The $70 Billion Run Rate Machine

The brightest spot in Alphabet's Q4 was its Cloud division, which saw revenue grow 48% year over year, blowing past Goldman's own estimate of 40%.

The backlog swelled to $240 billion, up 158% from a year earlier and 55% sequentially, supported by record enterprise AI demand.

Goldman said more $1 billion+ deals were signed in 2025 than in the previous ...