GOOGL Stock in Focus as Goldman Sachs Reaffirms Strong Buy Rating on Google

Goldman Sachs reaffirmed its Strong Buy rating on GOOGL stock this week, setting a $435 price target. That target implies roughly 21% upside from GOOG’s Thursday opening price of $360. Analyst Eric Sheridan cited disciplined AI spending and a growing backlog as key drivers. 

GOOGL stock remains in focus as investors weigh AI infrastructure costs against cloud growth.

GOOGL Price Target: Goldman Sachs Sees $435, Implying 21% Upside

Eric Sheridan, Partner and Managing Director at Goldman Sachs, urged clients to build entry positions in GOOGL. His note pointed to Alphabet’s $462 billion revenue backlog as a key long-term growth driver.

• Current price target: $435, unchanged from Goldman’s recent estimate
• Implied upside: approximately 21% from GOOG’s $360 opening price
• Potential ROI: a $1,000 investment could grow past $1,200

Sheridan highlighted that this backlog could add to Alphabet’s revenue through 2030. That long runway supports Goldman’s confidence in GOOGL stock despite near-term capex concerns weighing on shares.

What’s Driving Goldman’s Bullish GOOGL Call

Alphabet’s Q2 2026 results showed revenue reaching $119.8 billion, up 24% year-over-year. Google Cloud revenue surged 82% to $24.8 billion, with margins expanding to 35.6%.

• Cloud backlog: $514 billion, up $50 billion sequentially
• GOOGL stock recovery: up 14% from its July 24 post-earnings low of $315.04
• July 31 closing price: $356.65, up 6.88% for that session

Alphabet also disclosed advanced negotiations for a $15 billion, 1.6-gigawatt data center in Texas. Google would serve as both financial backer and chip supplier for that facility.

Cloud Growth and AI Infrastructure Investments

This Texas data center deal reportedly supports Anthropic’s growing AI compute needs, similar to Amazon’s OpenAI investment structure. Goldman Sachs is among several banks reportedly negotiating financing for this infrastructure project.

GOOGL Stock Performance and Capex Concerns

Alphabet increased its 2026 capital expenditure guidance from $180 billion to $205 billion for AI infrastructure. That jump has drawn criticism from some Wall Street analysts wary of overspending risk.

• GOOGL’s 52-week high: $408.61, reached earlier this year
• All-time closing high: $402.38, recorded May 13, 2026
• Average analyst price target: $435.67, per FactSet-polled analysts

Despite these capex concerns, Goldman Sachs views Alphabet’s spending discipline favorably compared to industry peers. The firm believes GOOGL could lead the broader AI sector over the next five years.

Wall Street Take

Goldman Sachs’ reaffirmed Strong Buy rating signals continued institutional confidence in Alphabet’s AI and cloud strategy. The $435 target reflects optimism around Cloud’s 82% growth rate and its expanding $514 billion backlog. Rising capex remains a legitimate risk factor that could pressure margins if AI monetization slows. 

Investors should watch Alphabet’s upcoming quarterly results for further confirmation of this bullish GOOGL thesis.

Disclaimer:

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