• Stephen Ju from UBS has set a price target of $348 for Alphabet Inc. (NASDAQ:GOOG), indicating an 11.98% potential increase.
• Alphabet's Gemini AI reaches 750 million active users, highlighting the company's strategic pivot towards AI and cloud computing.
• The company's cloud unit reports a 48% year-over-year revenue growth and a 30.1% operating margin, showcasing its competitive edge in the cloud sector.

Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, is a tech giant known for its dominance in search engines and digital advertising. Recently, Stephen Ju from UBS set a price target of $348 for GOOG, suggesting an 11.98% potential increase from its current price of $310.78. This reflects confidence in Alphabet's strategic direction and growth potential.

Alphabet is navigating a decline in traditional search usage by capitalizing on its Gemini AI, which reached 750 million active users in Q4 2025. This AI initiative is crucial as it presents both risks and opportunities. Despite high projected capital expenditures of $175-185 billion in 2026, these investments are essential for advancing AI capabilities and sustaining monetization.

Alphabet's cloud unit is thriving, with a 48% year-over-year revenue growth and a 30.1% operating margin, outperforming competitors. This success is part of a broader strategy to integrate AI and cloud services, positioning Google Cloud as a strong competitor to AWS. The company's focus on AI and cloud computing has led to a strong buy rating.

Alphabet's strategic shift towards becoming a transactional AI utility is evident in its capital expenditures and cloud backlog of $240 billion. The development of custom Ironwood TPUs and a 78% reduction in Gemini serving costs contribute to deflationary unit economics, mitigating risks related to depreciation and cash flow inversion. This positions Alphabet for sustained growth and profitability.

GOOG's current stock price is $310.28, with a slight decrease of $1.05 or -0.34% today. The stock has fluctuated between $309.96 and $313.76 during the trading day. With a market capitalization of approximately $3.75 trillion, Alphabet remains a dominant player in the tech industry, supported by a trading volume of 7,970,852 shares today.