Intel stock spikes after report of possible US government stake
Investing.com - BMO Capital has raised its price target on Alphabet (NASDAQ:GOOGL) to $208.00 from $200.00 while maintaining an Outperform rating on the stock. The tech giant, currently valued at $2.21 trillion, maintains a strong financial position with a PEG ratio of 0.53, suggesting attractive valuation relative to its growth rate.
The firm also reintroduced Alphabet as a Top Pick, noting that shares are currently trading at 18 times next-twelve-months price-to-earnings ratio, compared to a 5-year average of 22 times. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.31, with 10+ additional exclusive insights available to subscribers.
BMO Capital cited growing optimism that Google AI products, specifically PMax and Gemini, will increase spending from existing advertisers and bring in a new cohort of small and medium-sized businesses.
The firm has raised its second-quarter 2025 and full-year 2025 Search growth forecasts to 10% and 11%, respectively, up from previous estimates of 9% and 10.6%, and above the Street consensus of 9% for both periods.
BMO Capital also increased its Google Cloud Platform estimates, pointing to the adoption of Vertex (NASDAQ:VRTX) AI and the anticipated second-half 2025 launch of Ironwood TPU, while noting that YouTube is unlocking direct response advertising budgets with its AI offerings. The company’s robust revenue growth of 13.07% in the last twelve months supports these optimistic forecasts.
In other recent news, Cognition has finalized an agreement to acquire AI coding startup Windsurf after OpenAI’s planned acquisition fell through. This acquisition includes Windsurf’s intellectual property, products, and business operations, with all employees participating financially in the transaction. Concurrently, Google has hired key Windsurf executives for its DeepMind division under a separate $2.4 billion deal, aiming to enhance its Gemini platform. Google is also expanding its AI offerings by introducing a photo-to-video feature for Gemini paid subscribers, allowing users to convert images into short video clips. Additionally, Alphabet Inc. announced the rollout of its Gemini AI assistant to Wear OS smartwatches, broadening its AI capabilities to wearable devices. In the competitive landscape, AI startup Perplexity has launched "Comet," a new AI-powered web browser, challenging Google’s dominance. Despite this, Google’s stock rose amid overall tech sector strength, reflecting investor confidence in its market position. Lastly, Nvidia (NASDAQ:NVDA) has reached a $4 trillion market capitalization, with Wedbush analysts highlighting its pivotal role in the AI sector.
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