Alphabet (GOOGL) Gains Market Outperform Rating With Google Ad Revenue Growth and Data Center Expansion

Alphabet Inc. (NASDAQ:GOOGL) ranks among the best big data stocks to invest in. On December 31, Citizens raised its price target for Alphabet Inc. (NASDAQ:GOOGL) to $385 from $340 retaining a Market Outperform rating on the company’s shares. The firm noted projections that Google may boost search revenue in the fourth quarter of 2025, something it considers as the company’s greatest near-term issue.

The firm stated that Smart Bidding Exploration is raising Google’s ad load by increasing the percentage of inquiries associated with advertising. The third quarter marked the first complete quarter with Smart Bidding Exploration, and Citizens believes that the fourth quarter will reap the rewards in a similar manner.

Additionally, on December 22, Alphabet Inc. (NASDAQ:GOOGL) announced its plans to acquire Intersect, a provider of data center and energy infrastructure solutions, for $4.75 billion. The aim is to increase Google’s capacity to generate power for its data centers.

Google already has a minority position in Intersect from a fundraising round announced in December last year. Intersect stated in a press release at the time that its strategic alliance with Google and TPG Rise Climate sought to construct gigawatts of data center capacity in the United States.

A key player in the technology sector, Alphabet Inc. (NASDAQ:GOOGL) is led by Google, a search engine that handles billions of search queries every day. The company owns a number of applications and productivity platforms, the most notable of which being YouTube. The company is a data analytics pioneer, having used predictive metrics in Google Analytics for many years.

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.