Reviewed by Gotrade Internal Analyst
Gotrade News - Wells Fargo just upgraded Alphabet (GOOGL) from 'Neutral' to 'Buy' on Monday (02/23). The move came with a bumped-up 12-month price target, now sitting at $387 versus the previous $353, implying a potential 22.86% upside from current levels.
The upgrade landed right after Google stock pulled off a solid 5.67% rally over five trading days. According to Finbold, analyst Ken Gawrelski saw that momentum as a strong enough turning point to flip his outlook on Alphabet's prospects entirely.
Key Takeaways:
- Wells Fargo upgrades GOOGL to 'Buy' with a $387 target, flagging 22.86% upside potential
- Alphabet's planned AI capacity expansion from 15GW to 35GW by 2028 is the key driver behind the call
- Broader Wall Street consensus rates Google as a 'Strong Buy' with an average target of $382.81
The biggest factor behind the rating change is Alphabet's aggressive push into AI infrastructure. Gawrelski projects the company will scale its capacity from 15GW to 35GW by 2028, outpacing rivals in the same space.
Beyond the hardware buildout, Gemini's revenue potential also played a big role in the upgrade. Gawrelski expects subscriptions and corporate partnerships tied to Gemini could meaningfully boost Alphabet's top line over the next few years.
Wall Street Consensus Lines Up with the Upgrade
Wells Fargo's revised call actually brings the firm in step with the broader Wall Street crowd. Based on data Finbold pulled from TopRanks on Monday (02/23), the overall consensus for GOOGL sits firmly at 'Strong Buy'.
The average price target across Wall Street analysts currently lands at $382.81. That figure is just a hair below Wells Fargo's fresh $387 target, pointing to widespread conviction in Alphabet's growth runway.
Where Google Stock Stands Right Now
Google shares are trading around $315, barely budging with a 0.05% dip year-to-date. Still, the five-day rally of 5.67% signals a notable shift in short-term momentum that caught analysts' attention.
The gap between the current price and the average Wall Street target leaves plenty of room to run. For market watchers, the combo of a rating upgrade and AI expansion makes for two catalysts worth keeping on the radar in the months ahead.
The AI boom continues to drive fresh revaluations across Big Tech names. Alphabet's commitment to beefing up its infrastructure signals a clear intent to lead the pack, not just keep up.
With Wall Street stacking up on the bullish side, all eyes now turn to execution. Whether Alphabet can deliver on its capacity targets and turn Gemini into a real revenue engine will ultimately decide if that $387 price tag holds up.
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Reference:
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Finbold, Wall Street updates Google stock price target for next 12 months. Accessed on February 24, 2026
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