Loop Turns Bullish on Alphabet (GOOGL): 'Wall of Worry Obliterated Under Waves of AI Enthusiasm'

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Analysts are Tracking Closely. On November 18, Loop upgraded the stock to “Buy” from Hold and raised its price target to $320.00 from $260.00.

The firm believes that the wall of worry for Alphabet shares has been “obliterated” and that investors are less concerned about AI cannibalization of search. Analysts also noted that Google search results “remain as healthy as ever” with benefits from AI Overviews and AI Mode features.

Moreover, traffic share to Gemini has been doubling YoY and the “the position of Google Cloud and size of opportunity for its proprietary AI processors (TPUs) is becoming better appreciated.”

Overall, the firm holds a bullish view on Alphabet shares driven by a renewed confidence in AI-led growth and valuation upside across core and Cloud.

“While our longer-term view on search market dynamics still has questions (and drives the majority of valuation) we are raising our target multiple to 20X EPS for Google core. Multiple revision on Google core is about two-thirds of our target revision. We are also significantly raising our growth outlook for Google Cloud and maintaining our target multiple of 25X adj. EBITDA.”

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.