Google Stock Price Upgrade Signals AI Capex Confidence as Correction Deepens

Alphabet's Google stock (NASDAQ: GOOG) opened Friday at $333, but the real story is the deepening 10% correction from its July peak—a stark warning that Wall Street's AI spending anxiety is far from over. The turmoil follows Alphabet's Q2 announcement to hike its 2026 AI infrastructure capex to $205 billion from $180 billion, triggering a 7% single-day crash despite robust revenue beats. Now, as Freedom Capital Markets upgrades the price target, the critical question for investors is whether this dip is a golden accumulation zone or the start of a more prolonged de-rating for Big Tech's AI arms race.

Google Stock New Price Target: Freedom Capital Markets Goes Bullish on GOOG

Leading investment banking firm Freedom Capital Markets upgraded its Google stock price prediction with a bigger target. Saken Ismailov, the Equity Research Analyst at the banking firm, gave GOOG a buy rating last week. The firm predicts that Google stock will reach a new price target of $400 next. That’s a profit of $67 per share if investors take an entry position in the equity today at $333.

It would also be an uptick and return on investment (ROI) of approximately 20% from its current price. Therefore, an investment of $1,000 could turn into $1,200 if the price prediction turns out to be accurate. This makes Google stock a must-watch equity as the upside potential remains immense. An investment even at the $330 level could prove to be rewarding to traders.

The analyst highlighted Alphabet’s dominance in the AI sector as the primary reason for the uptick. The company is pulling all strings to be ahead of the curve in building the next-gen technology. From producing custom-made AI chips and optimizing Gemini models to building Cloud infrastructure, Alphabet is leading in the industry. The next decade could change its fortunes, as the AI sector enters the mainstream segment. An investment made now could reap the fruits after 2030.