Alphabet Plans $175B to $185B Investment in AI by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GOOGL?
Source: Fool
- Surge in Investment: Alphabet announced plans to invest between $175 billion and $185 billion in AI resources by 2026, nearly doubling its 2025 expenditure and surpassing analysts' expectations of $120 billion, reflecting the company's strong confidence in the future of AI.
- Robust Revenue Growth: In Q4 2025, Google Search revenue grew by 17% year-over-year, while Google Cloud revenue surged by 48%, indicating that the company's diversified AI-related businesses are rapidly expanding and enhancing its market competitiveness.
- Expanding User Base: The Gemini app has surpassed 750 million monthly active users, showcasing Google's strong appeal and user retention in AI applications, further solidifying its leadership position in the digital ecosystem.
- Market Confidence Restored: Despite the market's negative reaction to Google's 2026 spending plans, the company conveys through its ongoing investments and strong earnings report that the AI sector is still thriving, with significant future business opportunities ahead.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 318.580
Low
279.00
Averages
338.25
High
390.00
Current: 318.580
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Robust Revenue Growth: In Q4 2025, Google Search revenue grew by 17% year-over-year, while Google Cloud revenue surged by 48%, indicating that the company's diversified AI-related businesses are rapidly expanding and enhancing its market competitiveness.
- Expanding User Base: The Gemini app has surpassed 750 million monthly active users, showcasing Google's strong appeal and user retention in AI applications, further solidifying its leadership position in the digital ecosystem.
- Market Confidence Restored: Despite the market's negative reaction to Google's 2026 spending plans, the company conveys through its ongoing investments and strong earnings report that the AI sector is still thriving, with significant future business opportunities ahead.
See More
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