Alphabet (GOOGL) Gets Price Target Hike as Scotiabank Stays Bullish on AI

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Investors Are Watching Closely. On January 9, Scotiabank analyst Nat Schindler raised the price target on the stock to $375.00 (from $336.00) while maintaining a Sector Outperform rating. With AI tailwinds, the firm remains confident in continued outperformance for GOOGL.

“OUR TAKE: Positive. Google is up ~64% over the TTM, and every decision they make seems to be the correct one.”

Schindler noted robust Q3 results for Alphabet, demonstrating acceleration across Search, YouTube, and Cloud segments. He noted how the firm is particularly confident on potential upside within Cloud, particularly operating margins.

While Google has had a slower start in artificial intelligence development as compared to other competitors, the firm views it as a structural winner within the hyperscalers.

“Ultimately, while Google got a (relatively) slower start than competitors within the ‘AI Wars’, we see Google as the structural winner within the hyperscalers. There may be some noise within D&A but Google stock should outperform, given how the name stands to benefit from AI monetization.”

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.