Alphabet (GOOGL) Stock: Cramer's $400 Price Target Points to 20% Upside

TLDR

Table of Contents

Alphabet shares climbed to a new record of $338 on Tuesday, marking the second consecutive day of all-time highs
Jim Cramer forecasts a 20% rally to $400, calling Alphabet the best big-cap tech stock to own right now
The stock delivered a 65% return in 2025 and has gained nearly 5% in early 2026
Google’s Gemini AI partnership with Apple is driving investor confidence in the company’s AI strategy
Alphabet joined the $4 trillion market cap club alongside Apple, Microsoft, and Nvidia

Alphabet stock set another record Tuesday as one of Wall Street’s most-watched voices made a strong case for more gains ahead.

Alphabet Inc., GOOGL

Jim Cramer told CNBC viewers he sees the Google parent climbing straight to $400 per share. At current prices around $338, that represents roughly 20% upside.

The stock closed up 2% Tuesday after setting its previous record Monday at $334. Alphabet has now outpaced every other Magnificent 7 tech stock in early 2026.

Meta dropped 4.7% year-to-date while Nvidia fell 1.7% and Tesla declined 0.6%. Alphabet gained nearly 5% over the same period.

Last year’s 65% rally made Alphabet the top Magnificent 7 performer. Cramer admitted he made a mistake selling his Charitable Trust position last spring.

AI Strategy Wins Over Investors

The company’s partnership with Apple has changed how the market views its AI capabilities. Google will integrate its Gemini AI models across Apple’s product lineup.

This multi-year deal is expected to boost Gemini usage and help it compete with ChatGPT. Cramer said Gemini 3 is a “home run” and uses it regularly for compiling information.

The Apple collaboration helped Alphabet reach a $4 trillion valuation. Only three other companies have crossed that threshold.

Antitrust concerns that weighed on the stock earlier faded after trials resulted in minimal penalties. Cramer described the outcome as “just a slap on the wrist.”

What Needs to Happen Next

Bank of America outlined key factors that will determine whether shares can keep climbing. Gemini must maintain its technological edge over competing AI platforms.

The company’s custom tensor-processing units need to deliver cost advantages. Search monetization also needs to accelerate to support current valuations.

Bank of America wrote that the “AI cycle is moving in the right direction for Alphabet” in a Tuesday research note.

Cramer maintains a $350 price target for the stock. His Investing Club started a position in late December and plans to add more shares on any pullback.

Market Rotation Creates Opportunity

Investors have been moving money out of high-valuation tech stocks into sectors like industrials and energy. That rotation has hurt most Magnificent 7 names but Alphabet continues attracting buyers.

Cramer said the market has “really soured on these big-cap names” but singled out Alphabet as the exception. He believes it will be one of 2026’s biggest outperformers alongside Nvidia.

The stock trades above Cramer’s cost basis, so he’s waiting for a dip before adding to his position.

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