Wells Fargo Cuts Alphabet (GOOGL) Target to $416 and Keeps Overweight Rating
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Wells Fargo Cuts Alphabet (GOOGL) Target to $416 and Keeps Overweight Rating Abdul Rahman Thu, July 9, 2026 at 1:55 PM EDT 2 min read GOOGL GOOG Alphabet Inc. (NASDAQ: GOOGL ) is one of the best Seth Klarman portfolio stocks to buy . On July 2, Wells Fargo lowered its price target on Alphabet Inc. (NASDAQ:GOOGL) to $416 from $435, while maintaining its Overweight rating. Analyst Ken Gawrelski made the revision and noted that even with the lower target, he remains upbeat about Alphabet's near-term performance. Gawrelski projected Alphabet's Q2 FY 2026 search revenue to grow by 17% year over year and total Google revenue to expand by 32%. Google is a component of Alphabet. The analyst also expects core Google revenue, which excludes the Gemini AI product line, to grow by 28%. Wells Fargo also expects Alphabet's custom AI chips, known as tensor processing units, or TPUs, to become a meaningful external revenue source starting in the third quarter. TPU sales are likely to accelerate revenue growth to around 150% in the second half of the year, Gawrelski said. However, the analyst expects the profitability of those chip sales to be lower, and with incremental margins dropping into the low 30s. Alphabet Inc. (NASDAQ:GOOGL) is a technology holding company, which operates through Google Services, Google Cloud, and Other Bets segments. It offers products and services including Search, ads, Android, Google Play, Chrome, Google Maps, devices, and YouTube. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . READ NEXT: 12 Best Stocks to Invest In According to Two Sigma Advisors and 9 Best Robotics Stocks to Buy as Amazon Deploys 1 Million Robots . Disclosure: None. Follow Insider Monkey on Google News .
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