'It's Not a Close Fight Anymore,'Says Top Analyst About Alphabet Stock

Alphabet (GOOGL), the parent of Google and YouTube, just earned a Street-high price target from Pivotal Research. In a new note, top Analyst Michael Levine kept his Buy rating and raised his target to $400 from $350, saying Alphabet is beginning to separate itself from rivals. The new price target suggests about 26% upside from current levels.

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Levine said Search remains a reliable profit driver with strong pricing power. He also called Gemini one of the strongest AI systems today, supported by years of work and data that few companies can match. With more searches now routed through Gemini on phones, Alphabet keeps more profit. Apple (AAPL) even pays for access to Gemini, a change that lifts margins and gives Alphabet more room to invest.

Why He Thinks Alphabet Pulls Ahead

Levine believes Gemini will gain even more ground in 2026. With more than five billion users across Alphabet's products, he said Gemini has a built-in distribution lead no rival can match. Most people stick with default apps, which could make Gemini the everyday AI tool for phones and glasses.

He also warned that the picture may get tougher for OpenAI if these trends continue. Rising expenses and slowing growth could force it to cut spending next year, which might lead to a choppy period for AI stocks. But he said Alphabet is well-positioned to handle that.

Levine also pointed to Alphabet's TPUs as a key advantage. He said they offer cheaper AI computing than Nvidia's (NVDA) GPUs and could win more large customers. Over time, he sees TPUs either taking share from Nvidia or pushing GPU prices lower, both of which help Alphabet.

To Levine, the message is clear. Alphabet has the users, the data, and the AI. And the company's lead, he said, is getting harder to ignore. He expects revenue, profits, and free cash flow to keep improving from here.

Is GOOGL Stock a Buy, Hold, or Sell?

Currently, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 29 Buys and seven Hold recommendations. The average GOOGL stock price target of $318.48 indicates shares are fully priced at current levels.