Alphabet (GOOGL) popped to a yearly high on Tuesday, hitting $397 before opening Wednesday at $388, capping a dramatic run that’s seen the stock climb from $273 at the end of March to $397 in under two months. The rally accelerated after Alphabet’s blowout quarterly report, which topped estimates and reassured investors that its AI spending is beginning to pay off.
Institutional investors piled in, locking in sizable gains as the company pushed toward the psychologically important $400 mark. The bullish momentum was reinforced by strong fundamentals in the quarter: Alphabet posted Q1 earnings per share of $5.11 versus consensus estimates of $2.63 — a gap that helped convince market participants the company’s AI investments are driving near-term profit and long-term growth potential.
Street-high target and rationale
- Citizens Research analyst Andrew Boone put a street-high price target of $515 on GOOGL and reiterated a buy rating, calling the $388 level “cheap” and arguing the stock remains significantly undervalued.
- Boone’s bullish case centers on Alphabet’s vertical integration: its custom TPU 8-series chips give it a cost advantage over peers that still rely on third-party hardware to train and deploy large AI models. That in-house hardware, he says, has materially boosted Gemini and positions Google to scale AI more efficiently.
- Other bullish data points Boone highlights include Alphabet trading at roughly 29x consensus 2026 earnings and a $460 billion Cloud backlog, both of which support a longer-term growth story.
What it would mean for investors
- If Boone’s $515 forecast proves accurate, GOOGL would gain roughly 33% from the $388 open price — turning a $1,000 stake into about $1,330.
Why crypto-focused readers should care
- The broader AI infrastructure race is reshaping demand for specialized chips and cloud compute — areas that overlap with the crypto ecosystem’s appetite for high-performance hardware and cloud services. Alphabet’s strategy of building in-house accelerators and integrating them with its AI stack could shift competitive dynamics across industries that rely on massive compute, including blockchain projects and AI-driven crypto applications.
Bottom line: Alphabet’s post-earnings surge reflects both beaten expectations and growing investor confidence that its AI capital expenditures are translating into real returns. Still, price targets vary and market risks remain, so investors should weigh the upside case against valuation and broader market volatility.
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