Alphabet (GOOGL) Buy Rating Reaffirmed by Goldman Sachs, Citing Cloud and AI Momentum

Alphabet Inc. (NASDAQ:GOOGL) is one of the best ESG stocks to buy now according to hedge funds. On September 10, Goldman Sachs analyst Eric Sheridan maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with an unchanged price target of $234.

Sheridan highlighted Alphabet’s strength in cloud and AI as central to its growth outlook. He argues that enterprises are increasingly adopting AI-based cloud tools to bolster their workflows, and the company should be able to capitalize on this demand through its wide portfolio of cloud services. This demand thus indicates a growing migration pipeline, implying strong growth for Alphabet Inc. (NASDAQ:GOOGL).

The analyst also emphasized the company’s scalable, cost-efficient AI systems and diversified revenue base, with 13 product lines each generating more than $1 billion annually.

The analyst also believes that Alphabet Inc.’s (NASDAQ:GOOGL) efforts to broaden enterprise access to a broad portfolio of AI models reinforce its positioning as a long-term growth leader in large-cap tech.

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware.

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. This article is originally published at Insider Monkey.