Analysts at Raymond James have raised their price forecast for Alphabet (GOOGL) stock, providing a bullish outlook on Google Cloud and AI efforts. Alphabet (GOOGL)’s stock is experiencing a slight pullback in price, down 1.4% in the last five days. GOOGL has performed well in 2026 so far, up over 5.7% since January 1. Hence, the slight dip in price this week isn’t worrying investors too much, and analysts still forecast booms ahead.

“We believe Google is likely entering a cycle of improving AI stack narrative and upward revisions that could create one of the highest quality top-line AI acceleration stories in the public universe,” Raymond James analyst Josh Beck said in a report. He also estimates that Google’s cloud computing business will post revenue growth of 44% in 2026 and 36% in 2027. That tops consensus estimates of 34% and 31% growth, respectively. James’ revised price forecast of $400 for Google stock would reflect a gain of nearly 21% from its current value.

Furthermore, Alphabet’s success in AI has been seen in various Google products, including internet search, cloud computing, digital advertising, autonomous vehicle unit Waymo, YouTube, Gmail, Workspace, and Google Maps. Last year, Google introduced its newest artificial intelligence model: Gemini 3. Google improved the chatbot’s ability to code, search, and create images, which has benefits in numerous Google applications.

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As for cloud computing, Google is leveraging its artificial intelligence prowess in models, chips, agents, and data security. Google’s homegrown AI accelerator chips, called TPUs, are becoming a stronger rival to Nvidia (NVDA), Beck said. Should Alphabet continue to close in on Nvidia and limit its reliance on the chipmaker, revenue can boom for the company, sending shares even higher

The dip that GOOGL felt early this week was felt throughout most of the stock market. However, most Wall Street experts suggest that the dip is only temporary due to economic concerns stemming from tariffs. Alphabet GOOGL has considerable potential to sustain its dominant run in 2026. Over the past year, GOOGL stock has risen by over 66%, one of the best performers among big tech stocks.