Shares of  (NASDAQ: GOOG) (NASDAQ: GOOGL) surged to new highs following its first-quarter earnings report. The company posted double-digit growth in revenue and earnings, driven by Search, YouTube, and Cloud. Alphabet also announced its first quarterly dividend of $0.20 per share and a new $70 billion share repurchase plan.

JPMorgan was one of several analysts raising their price targets. The firm upped its price target from $165 to $200 and kept an overweight (buy) rating on the shares. Alphabet's momentum, shareholder-friendly capital returns, and fair valuation could certainly justify new highs for the shares.

Alphabet is proving it can invest in artificial intelligence (AI) and grow profits. The company rolled out the new Gemini 1.5 Pro version of its AI model in the quarter, while net income jumped 57% year over year to over $23 billion. Management is delivering on the bottom line even as it builds a world-class technology infrastructure for AI.

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Source Fool.com