Cramer Calls Alphabet Crucial Hold Near $402 Post-I/O AI Surge

Alphabet shares trade near $402 with a $4.8 trillion market cap after Google I/O unveiled agentic AI tools including Gemini Flash 3.5. Strong Q1 results drove a 33% rally since April, fueled by Google Cloud’s 63% revenue surge to $20 billion and a $462 billion backlog. Analysts now debate whether momentum has shifted to other Mag-7 names amid decade-high multiples near 29-30x forward earnings and $180-190 billion 2026 capex plans, though Jim Cramer and several banks reaffirmed bullish stances on May 27-28.