Certain Wall Street analysts forecast that Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) could achieve market values exceeding $5 trillion by 2026. Brian Nowak at Morgan Stanley has set a target price of $415 for Alphabet, indicating a 35% potential upside from its current price of $307. Similarly, Michael Turrin at Wells Fargo predicts a price target of $700 for Microsoft, reflecting a 47% upside from its current price of $475.
Alphabet’s revenue has increased 16% to $102 billion, with earnings up 35% to $2.87 per diluted share, driven by strong demand for its AI infrastructure. The Google Cloud segment is gaining market share, aided by advances in generative AI tools. Meanwhile, Microsoft reported an 18% revenue increase to $78 billion, buoyed by robust growth in its Azure cloud segment, which plans to double its data center capacity in two years. Their non-GAAP earnings rose 23% to $4.13 per diluted share.
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