Alphabet’s Google stock (NASDAQ: GOOG) opened Thursday’s trading session at $360. The search engine giant is looking to reclaim the $400 level, but the ongoing market conditions are stunting its growth. The company faced fresh scrutiny after it announced an increase in capital expenditure from $180 billion to $205 billion to build its AI infrastructure in 2026. This has ruffled a lot of feathers on Wall Street, which is critical of overspending, and the risk of negative revenue is high.

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Google Stock Price Prediction: See Goldman Sachs’ New Target

On the heels of the heightened volatility, leading investment bank Goldman Sachs has given Alphabet’s Google stock a ‘strong buy’ rating. Eric Sheridan, the Partner and Managing Director at Goldman Sachs, wrote in a note to clients sent last week, urging them to start taking entry positions in GOOG. He highlighted that the search engine giant’s price is consolidating in value and is ready for the next leg up. A push from here could take the Magnificent 7 asset above the $400 zone.

According to Goldman Sachs’s analyst’s latest price target, Google stock is predicted to reach a high of $435. That’s a profit of $75 per share if traders take an entry position in GOOG today at $360. That’s also a return on investment (ROI) of approximately 21% from its current price. Therefore, an investment of $1,000 could turn into $1,200+ if the price prediction from Goldman Sachs turns out to be accurate.

Goldman Sachs highlighted Alphabet’s disciplined spending on AI, even with the recent increase in capex. Its backlog of $462 billion is also being put to work, which could add to its revenues until 2030. GOOG is a promising asset even at $360, as the next five years could make it lead the AI sector. Google stock is among the top contenders to directly benefit from the ever-growing demand in the AI sector.