GOOGL Stock Upgraded to Overweight as Wells Fargo Eyes 35 GW Compute Target by 2028

⬤ Alphabet just got a meaningful vote of confidence from Wall Street. Wells Fargo lifted its rating on GOOGL from Equal Weight to Overweight and raised the price target from $354 to $387. The firm's research note laid out a clear framework for what makes an "AI winner" - three things: access to large customer data sets, broad distribution reach, and serious compute capacity. According to the analysts, Alphabet checks all three boxes.

⬤ The heart of the upgrade is infrastructure. Wells Fargo pointed to "Project Google," an ambitious plan to grow the company's compute capacity from 15 gigawatts at the end of 2025 to 35 gigawatts by 2028. That kind of scale is hard to replicate, and the firm argues it gives Alphabet a structural edge over other hyperscalers in delivering AI products to both consumers and enterprise clients.

⬤ That infrastructure story doesn't exist in a vacuum. AI-driven expansion across cloud services, search advertising, and subscription offerings has already been pushing GOOGL's top line higher, with infrastructure scale sitting at the center of its competitive positioning. The more Alphabet builds out its compute base, the more it can lean into those revenue drivers.

⬤ The bigger picture is also worth keeping in mind. Advanced AI workflows demand enormous computational resources, and companies that can't keep up with those requirements will struggle to compete long-term. Alphabet's planned capacity build puts it ahead of that curve, reinforcing its ability to sustain growth as AI demand accelerates across the industry.

⬤ The Wells Fargo upgrade ties together two things that are increasingly hard to separate in tech: infrastructure scale and strategic execution. With compute capacity on track to more than double by 2028 and AI monetization already showing up in revenue, GOOGL's outlook looks increasingly tied to how well it can turn those structural advantages into durable market leadership.