Alphabet (NASDAQ: GOOGL) has reported a larger-than-expected increase in capital spending for the past quarter, but Google stock price targets suggest analysts are still confident in the technology conglomerate.

Notably, Barclays raised its price target on Alphabet on July 23 from $405 to $425 while reiterating its “Overweight” rating on solid leadership across the artificial intelligence (AI) ecosystem despite near-term cost pressures.

The brokerage further added that the second-quarter results only reinforced Alphabet’s position at every major layer of AI, from consumer applications such as Search and Gemini to AI models, which the management believes could accelerate in the coming quarters as AI adoption expands.