BNP Paribas analyst Nick Jones said Alphabet Inc. (NASDAQ:GOOGL) Google, is strengthening its position in agentic AI, with its cloud and infrastructure strategy supporting future growth.

Analyst Sees Upside From AI And Cloud Positioning

Jones said on Thursday that he is "incrementally positive" on Google's role in agentic AI, citing its vertically integrated cloud offering.

He noted that Google's ability to combine its own chips with third-party Graphics Processing Units (GPUs) and integrate across platforms should help drive higher enterprise cloud and AI spending.

BNP Paribas set a $390 price forecast on the stock, implying about 15% upside from the $339.3 level.

Cloud Revenue Growth Could Accelerate

Jones said Google's shift from AI proof-of-concept to enabling enterprises to build and scale agents could boost cloud revenue growth in the medium term.

He added that easier data access and multi-cloud capabilities reduce friction for customers, which should support increased budgets for AI adoption.

Capex And Infrastructure Support Long-Term Strategy

Jones said Google's rising capital expenditure remains "reasonable," given its focus on scaling agentic AI.

He pointed to new AI infrastructure, including advanced Tensor Processing Units (TPUs) and data architecture, as key enablers of long-term growth as enterprise demand for AI continues to expand.

Technical Analysis

Alphabet is pressing the upper end of its 52-week range, sitting just below the $349.00 high, which is consistent with buyers staying in control. The stock is trading 7.8% above its 20-day simple moving average (SMA) and 7.5% above its 100-day SMA, suggesting the short- and intermediate-term trends remain higher.

The moving average convergence divergence (MACD), a trend/momentum indicator, is bullish with the MACD line above the signal line and the histogram positive, which suggests strengthening upside momentum. In everyday terms, MACD staying above its signal line usually means pullbacks are bought faster than rallies fade.

Over the last 12 months, the stock has been up 112.76%, which shows the longer-term tape has rewarded staying with the uptrend. With the price now near the $340.50 resistance area, the next test is whether buyers can absorb supply that has recently stalled rallies.

  • Key Resistance: $340.50 — a spot where upside attempts have tended to stall.
  • Key Support: $294.00 — an area where demand has previously shown up on pullbacks.

Earnings Outlook

The countdown is on: Alphabet is set to report earnings on April 29, 2026 (confirmed).

  • EPS Estimate: $2.62 (Down from $2.81 YoY)
  • Revenue Estimate: $104.04 Billion (Up from $90.23 Billion YoY)
  • Valuation: P/E of 31.3x (Indicates premium valuation relative to peers)

Top ETF Exposure

  • Nuveen Growth Opportunities ETF (NYSE:NUGO): 9.39% Weight
  • Alger 35 ETF (NYSE:ATFV): 9.31% Weight
  • Parnassus Core Select ETF (NYSE:PRCS): 9.70% Weight

Significance: Because GOOGL carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price Action

GOOGL Stock Price Activity: Alphabet shares were up 0.06% at $339.10 during premarket trading on Friday, according to Benzinga Pro data.

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