Key Points
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It wouldn’t be surprising to see Alphabet’s capital expenditures approach $200 billion in 2026.
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This business possesses thriving internet properties that will keep posting solid growth.
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Forecasting valuation and earnings into the future makes it easy to believe that Alphabet shares will reach $1,000 in a decade.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is one of the most successful companies that the world has ever seen. Its gargantuan market cap of $3.7 trillion trails only Nvidia and Apple. With its popular platforms and apps, this business deserves credit for making the internet more accessible for people.
And investors have reaped the rewards. Shares have climbed an impressive 729% in the past 10 years. Is this top artificial intelligence (AI) stock headed from $307.65 today to $1,000?
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Google logo on smartphone screen.
Image source: Getty Images.
Alphabet is becoming an even more powerful business
The AI boom is in full swing. And Alphabet is at the forefront of this technological trend. It’s spending like no other, with capital expenditures expected to total between $175 billion and $185 billion in 2026. The management team is intensely focused on strengthening its competitive position. And developing AI competence is essential to support the entire company’s ongoing success.
It’s easy to be bullish when you already have the upper hand. Alphabet has the leading search engine with Google Search, which commands 90% market share, while its YouTube sits atop the streaming wars when it comes to engagement. Its Google Cloud segment just posted monster 48% year-over-year revenue growth in the fourth quarter of 2025 (ended Dec. 31, 2025). And Waymo is making progress in autonomous vehicle capabilities.
There’s no reason to believe that Alphabet won’t continue to succeed going forward. And that can drive durable top-line gains.
A 225% gain is certainly in the cards
For Alphabet shares to reach $1,000 one day, they would need to rise 225% from the current price of $307.65. In my view, this is a realistic outcome. The only question centers on timing.
Valuation is one variable that investors must think about. As of this writing, the stock trades at a price-to-earnings ratio of 28.5. This might actually indicate that the shares are undervalued. I think a P/E multiple of 30 is a fair value for such a high-quality business. This adds some upside.
Investors also have to consider profit trends. Alphabet has had no issue growing the bottom line in the past. The consensus view among Wall Street research analysts is that the company’s earnings per share will increase at a compound annual rate of 12.7%. Maybe it’s reasonable to assume that this pace keeps up for the foreseeable future.
If there is no change to valuation, and Alphabet’s EPS rises at that yearly clip of 12.7%, the stock will get to $1,000 in about 10 years. While this doesn’t come close to its gain historically, it would still produce a satisfactory result.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy.