Truist Securities upgraded its price target for Alphabet Inc. (GOOGL) to $350, citing resilient performance in core search advertising and continued momentum in AI-driven monetization. The move reflects growing confidence in the company’s ability to leverage its dominant digital infrastructure.
- Truist raised its price target for GOOGL to $350
- 14% year-over-year growth in search advertising revenue in Q4 2025
- 22% increase in average revenue per user (ARPU) in search business
- AI-powered ad tools driving improved ad efficiency and click-through rates
- GOOGL’s market cap exceeds $1.8 trillion
- Focus on generative AI and cloud infrastructure as long-term growth levers
Alphabet Inc. (GOOGL) has received an upgraded price target of $350 from Truist Securities, signaling enhanced investor optimism amid strong underlying performance in its search advertising segment. The firm highlighted sustained year-over-year growth in search query volumes and increased advertiser spend, which have bolstered revenue in the company’s advertising ecosystem. This momentum is attributed to both organic demand recovery and the integration of AI-enhanced ad targeting tools across Google’s platforms. Key metrics support the positive outlook: Alphabet reported a 14% increase in search advertising revenue during the fourth quarter of 2025, driven by higher click-through rates and improved ad efficiency. The AI-powered features deployed in Google Ads, including automated bid strategies and enhanced search relevance algorithms, contributed to a 22% rise in average revenue per user (ARPU) in the core search business. These developments underscore the company’s ability to convert digital engagement into monetizable outcomes. The $350 target implies a 12% upside from Alphabet’s current trading price, marking one of the most bullish price targets among major Wall Street firms. Analysts note that continued investment in generative AI infrastructure, including the expansion of Google DeepMind and Vertex AI services, positions the company to capture long-term value across enterprise and consumer verticals. The recommendation also reflects confidence in Alphabet’s ability to maintain margin resilience despite rising cloud and AI-related expenses. The upgrade is expected to influence trading sentiment, particularly among growth-focused investors and index funds tracking large-cap tech. Alphabet’s market capitalization, currently exceeding $1.8 trillion, remains a benchmark for the broader tech sector. As AI adoption accelerates globally, the company’s integrated ecosystem—spanning search, cloud, Android, and YouTube—provides a durable moat and scalable revenue engine.