You don't necessarily have to choose between the stocks of two Big Tech giants—but if you must, Oppenheimer has a pick for you.
Bank of America analysts expect Alphabet Inc (NASDAQ:GOOG) to report another quarter of stable Search growth plus strong Cloud backlog growth, which could reinforce investor confidence in the company's AI execution. In a note to clients on Monday, the analysts increased their price objective on Alphabet to $280 per share, while reiterating their ‘Buy' rating on the stock.
GOOGL stock soared 36% in three months, propelled not just by steady revenue gains and a modest bump in profit margins, but by a striking surge in investor optimism that pushed its valuation multiple up 30%. See – Google's Unloved Stock Finally Gets Its Due – for more details.
In the coming months, London will get its first Waymo driverless ride-hailing vehicles, the first European market for the Alphabet Inc (NASDAQ:GOOG) business. Testing will begin with a small fleet of its vehicles with human 'safety drivers', before a full launch next year, the company said on Wednesday.
Alphabet (GOOGL) has faced setbacks in the past. Its stock fell by over 30% within a timeframe of fewer than 2 months in 2022, erasing billions in market capitalization and wiping out significant profits in one correction.
I rate Alphabet Inc. a Buy, driven by Google Cloud's transformation into a profitable, AI-powered growth engine. GOOG's full-stack integration—from custom AI chips to advanced models and ubiquitous software—creates a unique competitive moat among hyperscalers. The cloud segment's profitability, rapid revenue growth, and TPU efficiency edge position GOOG as a leader in enterprise AI adoption.
Alphabet Inc. (GOOG) closed the most recent trading day at $251.66, moving +2.22% from the previous trading session.
JP Morgan analysts remain bullish on Amazon.com Inc (NASDAQ:AMZN) and expect the company's Amazon Web Services (AWS) growth to accelerate during the second half of the year, driven by core cloud growth and AI led by Anthropic and Project Rainier. In a note to clients on Tuesday, the analysts also see Amazon benefitting from better-than-expected consumer spending, while viewing its valuation as being attractive on a price-to-earnings and free cash flow basis.
Google-owner Alphabet is expected to make capital expenditures of $82.2 billion this year, up from $52.5 billion last year, amid the AI boom.
Google is making a $15 billion investment to set up a 1-gigawatt data center and AI hub in India, even as the Indian government pushes for reduced reliance on U.S. tech giants.
Google said Tuesday it will invest $15 billion in India over the next five years, as it announced a giant data center and artificial intelligence base in the country.
Google will spend $15 billion over the next five years to build a vast artificial intelligence data centre in India's southern state of Andhra Pradesh, marking its largest-ever investment in the country. The new facility, to be built in the port city of Visakhapatnam, will start with one gigawatt of capacity and eventually expand to several times that size.