UBS raised its price target on Google (GOOGL) to $375 from $348 while keeping a Neutral rating, citing cloud acceleration and potential AI infrastructure upside.

UBS noted Alphabet’s potential to monetize external TPU sales, though the firm flagged current valuations as already reflecting near-term momentum.

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Alphabet (NASDAQ:GOOGL) stock just earned a strong endorsement from UBS, which raised its price target on the stock to $375 from $348 while keeping a Neutral rating. The move signals real fundamental momentum, even if UBS isn’t ready to call Alphabet a screaming buy at current levels. For long-term investors, the tension between a higher target and an unchanged Neutral rating is worth unpacking.

Alphabet shares traded near $337 as of this morning, and the stock is up 8% year-to-date. The UBS call arrives as Wall Street watches whether Alphabet’s cloud and AI momentum can sustain its recent run.

Ticker

Company

Firm

Action

Old Rating

New Rating

Old Target

New Target

GOOGL

Alphabet

UBS

Price Target Raised

Neutral

Neutral

$348

$375

UBS built its revised target around three themes. First, near-term cloud strength is accelerating for Alphabet’s Google. Google Cloud posted $17.66 billion in revenue in Q4 2025, up 48% year-over-year, with operating income more than doubling to $5.31 billion. CEO Sundar Pichai noted that “Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers, driven by demand for AI products.”

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Second, UBS flags external TPU sales as a potential upside driver. Alphabet’s custom Tensor Processing Units have been used internally to power AI workloads, but selling that capacity externally could open a meaningful revenue stream. Reddit discussions noted a long-term TPU and networking supply agreement between Broadcom and Google through 2031, generating bullish sentiment among retail investors tracking Alphabet’s AI infrastructure buildout.

Third, fears that ChatGPT would meaningfully erode Google’s advertising revenue have eased for now. Google Search generated $63.07 billion in Q4 2025, up 17% year-over-year, showing the core ad business remains resilient despite AI competition.

Alphabet crossed a major milestone in fiscal year 2025, with total revenue reaching $402.836 billion, the first time the company has surpassed $400 billion annually. Full-year net income came in at $132.17 billion, up 32%. The company carries a trailing P/E ratio of 31x and commands broad analyst support, with 62 Buy ratings and just 6 Hold ratings among covering analysts.

UBS’s note arrives ahead of Alphabet’s Q1 2026 earnings on April 29, when investors will look for confirmation that cloud growth and AI monetization are on track. The prediction markets currently assign a 97% probability that Alphabet beats Q1 earnings estimates, a level of confidence supporting the constructive tone of the UBS revision. The consensus analyst target sits at $376.50, putting UBS’s new $375 target in line with the broader Street view.

UBS’s Neutral rating reminds investors that the valuation already reflects good news. UBS believes the current GOOGL share price already prices in near-term cloud strength and potential TPU upside, which limits near-term risk-reward for new buyers.

If you hold Alphabet stock, the UBS target raise reinforces the bull case: cloud acceleration, AI infrastructure investment, and a resilient search business are moving in the right direction. Alphabet’s 2026 capital expenditure guidance of $175 billion to $185 billion reflects management’s conviction in long-term AI demand, though it introduces execution risk worth monitoring.

Watch for whether Alphabet’s Q1 earnings on April 29 show continued Google Cloud margin expansion and commentary on external TPU commercialization. Those data points will tell you whether UBS’s thesis is tracking as expected, or whether the Neutral rating was the more important signal.

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