Will Google Stock Reach $400 by 2026?

Google's Resurgence in the AI Landscape

After facing some challenges earlier this year due to increased competition in the artificial intelligence (AI) space and regulatory issues, Alphabet (GOOG) (GOOGL) is once again making waves in 2025. A key factor behind this resurgence is the launch of Gemini 3, its most advanced large language model (LLM) to date. This powerful AI tool has already been recognized as a serious competitor to OpenAI’s ChatGPT.

Simultaneously, there is growing demand for Google’s custom-built AI chips, with several major industry players seeking access. These developments are helping Google reaffirm its position as a leader in innovation and reminding the world that it remains a formidable force in the tech industry. Wall Street appears to be on board with this sentiment.

In fact, Pivotal Research recently gave a positive outlook for Google's stock, suggesting that shares could reach $400 in the coming months. The firm cited AI momentum and consistent growth across Google’s core operations as reasons for their optimism. With investor enthusiasm building and Google introducing groundbreaking innovations at an impressive pace, the question remains: can this tech giant achieve the ambitious target set by Wall Street in 2026?

About Google Stock

Founded in 1998, Google is a household name that needs no introduction. Most people interact with it multiple times a day without even realizing it. From Google Search and YouTube to Maps, Gmail, Android, and cloud services, Google has become an essential part of modern life. Now, the California-based company is channeling the same ambition into AI.

Its newly launched Gemini 3 is considered the company's most advanced LLM yet, with some experts calling it the strongest AI model available. At the same time, Google Cloud is becoming a hub for AI development, and the demand for its in-house AI chips is beginning to challenge chip giant Nvidia’s (NVDA) long-standing dominance in the GPU market.

While Tesla (TSLA) has been investing heavily in AI-powered robotaxis, Google is actually ahead in this race, with its Waymo division already operating autonomous ride-hailing services in multiple cities.

These rapid advancements demonstrate how aggressively Google is expanding its presence in the AI landscape. Despite starting 2025 on a slightly shaky note, with investors initially concerned about falling behind in the AI race, Google's market valuation is now hovering near an impressive $3.9 trillion. This places it among the most valuable companies globally.

Even more impressive, the stock has been the top performer within the elite "Magnificent Seven" this year, soaring 65.3% in 2025 alone. To put that into perspective, Google isn't just outperforming its tech-mega-cap peers; it's also far surpassing the broader S&P 500 Index ($SPX), which has only risen 16.19% during the same period. The tech giant also achieved a new 52-week high of $328.83 last month and is only down about 5% from that peak.

Google’s Q3 Earnings Snapshot

Google released its fiscal 2025 third-quarter earnings on October 29, and the results exceeded Wall Street's expectations on both the top and bottom lines. Revenue increased by 16% year-over-year (YOY) to $102.3 billion, surpassing forecasts of $100.1 billion. This growth was driven by a 14% increase in Google Services revenue to $87.1 billion, fueled by strong contributions from Search, YouTube ads, subscriptions, platforms, and devices.

Search continued to show its dominance, with revenue rising 14.6% YOY to $56.6 billion. Total Google advertising revenue climbed 12.6% YOY to $74.2 billion. Google Cloud was another standout, posting a robust 34% revenue increase to $15.2 billion, reflecting growing demand for enterprise cloud and AI workloads. The company also delivered solid profitability, with operating income rising 9% to $31.2 billion and an operating margin of 30.5%.

This figure would have been closer to 34% if not for a $3.5 billion antitrust penalty from the European Commission (EC). Additionally, earnings-per-share (EPS) reached $2.87, up 35.4% YOY, and surpassed analyst expectations by roughly 27%. The company highlighted momentum from its “full-stack approach to AI,” noting that first-party models such as Gemini now process a staggering seven billion tokens per minute, while the Gemini app has already surpassed 650 million monthly active users.

Further, management shared another impressive metric: Google Cloud backlog orders have now topped $155 billion, reflecting increasing demand for both cloud and AI solutions. Looking ahead, Google left little doubt about its future direction. Management guided fiscal 2025 capital expenditures to $91 billion–$93 billion, emphasizing continued investment in AI and infrastructure.

On the date of publication, Anushka Mukherjidid not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the HAWXTECH.NETDisclosure Policyhere. More news from HAWXTECH.NET ・A Low-Cost Model 3 Just Hit the Streets in Europe. Can That Help Turn Tesla Stock Around? ・Is It Too Late to Chase the IBM-Driven Rally in Confluent Stock? ・Here Is Where Option Traders Expect Carvana Stock to Be When It Joins the S&P 500 Index ・Should You Buy Spotify Stock Ahead of Its Big Music Video Push? Get exclusive insights with the FREE HAWXTECH.NETBrief newsletter. Sign up for a midday guide to what's moving stocks, sectors, and investor sentiment. Subscribe today!