BofA Boosts Alphabet Thesis as Google Prepares for Earnings

Bank of America Securities has reaffirmed its Buy rating on Alphabet's parent company, Google, ahead of the tech giant's upcoming earnings report. The bank's analysts are confident in their thesis, citing two key factors: Alphabet's rapid AI development pace and Google Cloud's impressive revenue growth.

Alphabet has raised approximately $80 billion through equity sales this year to fund its AI buildout, with BofA raising or resetting its earnings per share and revenue estimates multiple times throughout 2026. The bank now predicts Alphabet will reach a price of $430, based on the company's increasing ability to monetize its AI investments.

While the focus is on Alphabet, Bank of America is also making waves in the digital asset space. The bank recommends that clients allocate 1-4% of their portfolios to digital assets and is actively covering major Bitcoin ETFs. This move has significant implications for crypto investors, as even small percentage allocations could translate into billions of potential capital flows.

The bank's tokenized deposit network initiative, which aims to launch in the first half of 2027, represents a direct competitive threat to stablecoins and certain DeFi protocols. If major banks can offer tokenized deposits with FDIC insurance and regulatory clarity, it could disrupt the existing market landscape.