"UBS's revised target for Alphabet is built around three key themes: the accelerating strength of Google Cloud, potential revenue from external TPU sales, and the resilience of Google's advertising revenue. Google Cloud reported $17.66 billion in revenue for Q4 2025, a 48% increase year-over-year, with operating income more than doubling to $5.31 billion. CEO Sundar Pichai highlighted that Google Cloud ended 2025 with an annual run rate exceeding $70 billion, driven by AI product demand."
"Concerns that ChatGPT would significantly impact Google's advertising revenue have subsided. Google Search generated $63.07 billion in Q4 2025, reflecting a 17% year-over-year increase, demonstrating that the core advertising business remains robust despite the competitive landscape introduced by AI technologies."
UBS increased Alphabet's price target to $375 from $348 while keeping a Neutral rating, indicating strong fundamental momentum. Alphabet shares are currently trading around $337, up 8% year-to-date. UBS's revised target is based on three themes: accelerating cloud strength, potential revenue from external TPU sales, and resilience in Google's advertising revenue despite AI competition. Alphabet achieved over $402 billion in total revenue for fiscal year 2025, marking a significant milestone for the company.
Read at 24/7 Wall St.
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