BNP Paribas Exane Reaffirms Rating on Alphabet (GOOGL) Amid Intersect Power Acquisition

Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks for the next decade. On December 22, BNP Paribas Exane reaffirmed its Outperform rating and $355 price target for Alphabet. This sentiment followed the company’s announcement, on the same day, that it entered into a definitive agreement to acquire Intersect Power, which is a specialist provider of data center and energy infrastructure, for $4.75 billion in cash plus assumed debt. The firm views this move as a strategic step to accelerate the expansion of Google’s global data center footprint and energy generation capacity. The acquisition will not materially impact Alphabet’s financial figures in the immediate term but will strengthen its long-term competitive positioning in the AI sector.

Intersect Power is a leading developer of clean energy and data center infrastructure. The transaction follows a minority investment Google made in Intersect in late 2024 and comes at a time when energy availability has become the primary bottleneck for AI progress. By bringing Intersect’s world-class team in-house, Alphabet aims to bypass the delays of increasingly strained public utility grids. The deal specifically includes Intersect’s massive pipeline of energy parks, integrated sites that co-locate data centers directly with solar, wind, and battery storage. This includes the companies’ flagship joint project in Haskell County, Texas, which is currently under construction as part of Google’s broader $40 billion investment in the state through 2027.

Alphabet Inc. (NASDAQ:GOOGL) offers various products and platforms in the US, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.

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.