New York, Feb 23, 2026, 07:08 (EST) — Premarket
Alphabet picked up 0.3% to $315.89 ahead of the open on Monday following an upgrade from Wells Fargo. Shares last finished at $314.98 on Friday. 1
The broker bumped Alphabet up to “Overweight” from “Equal Weight”, lifting the price target to $387—previously at $354. On Wall Street, “Overweight” signals an expectation the stock will outperform its sector. 2
The stakes for this call are up, as investors want proof that big AI investments are translating into more than just soaring costs—they want lasting revenue. Alphabet, meanwhile, is right at the heart of that debate: ad dollars are fueling a still-accelerating push into cloud and AI.
Wells Fargo’s Ken Gawrelski points to Google’s “leadership” in data, distribution, and compute capacity, but notes industry growth depends on just how quickly more computing power comes online. The firm’s model sees total compute capacity hitting 35 gigawatts by 2028, up from 15 gigawatts at the close of 2025. Wells Fargo raised its projection for Google Cloud Platform revenue growth to 60% in 2026. The bank also estimates Gemini subscriptions could bring in $12 billion in annual recurring revenue—using that metric for subscriptions. Still, the shift toward AI-powered search poses a real risk to the company’s business model, the analysts warned. 3
Alphabet edged up, shrugging off a weaker premarket. U.S. index futures lost ground after President Donald Trump imposed a new 15% global duty, despite the Supreme Court having thrown out most of his earlier tariff initiatives. Arthur Laffer Jr., president of Laffer Tengler Investments, pointed out that uncertainty over tariffs makes it tough for companies: “what the tariffs are going to look like.” 4
Tariff churn’s a headache for tech, disrupting corporate plans and dampening budgets for advertising and cloud deals. Alphabet faces Amazon and Microsoft in the enterprise AI race—capacity and price shifts can come fast.
Alphabet isn’t holding back on spending for servers and data centers this year, a point the company has made clear to investors—even while some shareholders remain skeptical about the returns. “We are seeing our AI investments and infrastructure drive revenue and growth across the board,” CEO Sundar Pichai said earlier this month. The company pegged its 2026 capital spending at $175 billion to $185 billion. 5
But the stock isn’t immune—if trade policy slows growth, or the AI push continues burning through cash as rivals crowd in, investors could get skittish. A stumble in search or ad pricing would probably unsettle a market that’s already on edge about lofty valuations.
The next key moment for investors lands Tuesday at 12:01 a.m. EST, when U.S. Customs and Border Protection will halt collection of the emergency-law tariffs struck down by the Supreme Court and shut off the corresponding tariff codes. There’s still no word from the agency on when—if ever—refunds could roll out. Meanwhile, the administration is sticking with plans for a new 15% global tariff, citing a different legal basis. 6
