BofA Reaffirms Bullish Stance on Alphabet (GOOGL) As AI And Cloud Growth Accelerate

Alphabet Inc. (NASDAQ:GOOGL) is among the most fantastic stocks every investor should pay attention to. On November 6, Bank of America Securities analyst Justin Post reaffirmed his Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with a $335 price target. The analyst’s bullish stance was supported by the company’s growth trajectory in AI and cloud.

Alphabet recently introduced Ironwood, its seventh-generation Tensor Processing Unit, which is specifically designed for inference at scale. Post believes that Ironwood can significantly improve computing speed and energy efficiency, resulting in increased demand for its cloud services and enhanced ad targeting and optimization for its core advertising business. According to the analyst, this can help the company generate new semiconductor revenue streams and support its valuation.

The analyst also pointed to the company’s potential collaboration with Apple, which may see Google’s Gemini AI model being used in a redesigned version of Siri. This news was reported by Bloomberg on November 6, which also emphasized that this setup may cost Apple around $1 billion per year.

Separately, Bloomberg reported on November 3 that Alphabet has raised around $25 billion through the sale of bonds in the U.S. and Europe to fund its investment catering to the rising demand for AI and cloud services, as was evidenced in its Q3 results. The company’s capital expenditures are estimated to reach $91-$93 billion this year, as it continues to invest in rapid AI development and integrate AI into its products.

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.