Wells Fargo Raises Price Targets on GOOGL, AMZN, and META on Tuesday Citing Rising AI Infrastructure Costs

According to Wells Fargo analyst Ken Gawrelski, the firm raised its price targets on Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), and Meta Platforms Inc. (META) on Tuesday, citing rising AI infrastructure costs. Gawrelski increased Alphabet's price target to $438 from $416, Amazon to $322 from $312, and Meta to $835 from $767, maintaining 'Overweight' ratings on all three stocks.

Wells Fargo expects hyperscalers to pass higher costs to enterprise customers while maintaining attractive returns on AI infrastructure investments. The firm estimates the big four cloud service providers' AI infrastructure capital expenditures at $1.1 trillion in 2027, 23% higher than consensus estimates.