Alphabet Inc. (GOOG) Offers Steep Cloud Discounts to U.S. Federal Agencies; 71% Business Apps Deal Could Save Government $2 Billion

With strong hedge fund backing and a positive analyst outlook, Alphabet Inc. (NASDAQ:GOOG) makes it to our list of the Top 10 AI Infrastructure Stocks to Buy Now.

Google is set to expand its competitive position in the public sector. Reported on July 11, 2025, Alphabet Inc. (NASDAQ:GOOG) will run attractive discounts on its cloud computing services for the U.S. government, which align with broader federal cost-savings initiatives. Previously, in April 2025, a 71% discount on business apps was agreed upon for offering by Alphabet Inc. (NASDAQ:GOOG), which would generate up to $2 billion in cost savings if it reaches government-wide adoption.

Although Alphabet Inc. (NASDAQ:GOOG) suffered an $8.9 million loss in antitrust fines from Turkish regulators on July 10, 2025, analysts are optimistic about the company’s stock heading into Q2 2025 earnings. TD Cowen maintained its ‘Buy’ rating with a price target of $195, as disclosed on July 9, 2025. The analyst cited the strong competitive position of the company’s Google Search, along with the expectation that its direct response advertising segment will perform strongly through 2025 in a resilient U.S. consumer market.

While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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