Why Morgan Stanley Thinks Alphabet's (GOOGL) Innovation Cycle Isn't Priced In Yet

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Making Waves on Wall Street. On July 24, Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $210 per share from $205 following Alphabet’s latest earnings report on Wednesday.

Analyst Brian Nowak is optimistic about Google’s accelerating cloud revenue growth and its updated AI-based engagement metrics.

“Search, YouTube and Google Cloud all accelerated as GenAI-enabled innovation is driving faster growth,” he wrote in a Thursday note to clients. “Our EPS ests are largely unchanged (revenue higher offset by higher D & A/investment) but we remain OW as this accelerated pace of innovation sets up GOOGL for more durable multi-year growth.”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the potential of GOOGL 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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Disclosure: None.