Phillip Capital Lowers Google Stock Target Amid AI Spending

Phillip Capital Securities recently adjusted its outlook for Alphabet, lowering the price target for Google stock from 450 dollars to 425 dollars. This change comes as the search giant prepares to increase its capital expenditure from 180 billion to 205 billion dollars throughout 2026. The funds are earmarked for building out large scale AI infrastructure.

Analysts are questioning the immediate return on such heavy investment. While the current outlook remains bullish, the shift reflects a growing sense of caution on Wall Street. There is worry that if the aggressive spending does not translate into quick profit, it could create a bubble that might impact shareholder value in the near term.

Despite the reduction in the price target, traders are still looking at potential gains of roughly 27 percent from the current 335 dollar opening price. With the stock up about 6.5 percent year to date, many are watching to see if the company can prove that its AI strategy will generate significant growth for portfolios over the coming year.