Premier global equity research and brokerage firm Bernstein reiterated their hold rating for Alphabet’s Google stock (NASDAQ: GOOG). The leading equity opened Monday’s trading session at the $358 level. The social media giant mostly remained in the red in June, with only a few bouts of price spurts. Sell-offs and profit bookings are largely among the reasons for the dip, which has stunted its growth.

Also Read: Is Google Stock Worth Buying at $350 Level? Risks & Pros To Consider

What is Bernstein’s Target For Google Stock?

Chad Dillard, the Equity Research analyst at Bernstein wrote in a note to clients that Alphabet’s AI infrastructure is fundamentally altering its financial DNA. The pivot towards the next-gen technology allows it to achieve more robust revenues than its previous businesses, which it still dominates. He called the AI sector a “hyper-profitable” sector that acts as a cash machine for Alphabet. This can push Google stock higher in the charts, as the profit margin will only keep getting wider.

Bernstein’s latest price target for Google stock is $390. The price prediction is not too ambitious or too bearish, but it has sliced it in an achievable method. GOOG is in the $358 range and needs to rise by another $32 to reach the mentioned price target. The number is not impossible for software giants and can get there in just one good day’s trade. The tech sector can get two of these in a month if the markets favor the revenue.

The price target of $390 can make traders expect returns of close to 9%. Therefore, an investment of $1,000 could turn into $1,090 if the price prediction from Bernstein turns out to be accurate. Buying Google stock at the $350 level could be beneficial, including buying it on the dips. This improves the profit margin, allowing for better returns than expected. Once GOOG hits the $390 mark, the bulls will gear up to reclaim the $400 level.