Street Calls of the Week
Investing.com - DA Davidson raised its price target on Alphabet (NASDAQ:GOOGL) to $190.00 from $180.00 on Tuesday, while maintaining a Neutral rating on the stock. The stock, currently trading at $212.91, sits near its 52-week high of $214.65, having delivered an impressive 31% return over the past year. According to InvestingPro analysis, Alphabet’s current market valuation appears fairly valued based on their proprietary Fair Value model.
The firm cited the growing competitiveness of Google’s Tensor Processing Units (TPUs) in the artificial intelligence accelerator market, noting they remain "the best alternative to NVIDIA" with the gap between the two companies narrowing significantly over the past 9-12 months.
DA Davidson observed increasing positive sentiment surrounding Google’s TPUs, particularly based on their industry checks which indicate potential customer demand if Google were to sell its systems externally.
The research firm specifically highlighted that "notable frontier AI labs" would be interested in purchasing Google’s TPU systems if they became available to external customers.
Despite the price target increase reflecting improved prospects for Google’s AI hardware, DA Davidson maintained its Neutral rating on Alphabet stock.
In other recent news, Google announced a significant investment of $9 billion in Virginia to enhance its cloud and artificial intelligence infrastructure. This expansion includes a new data center in Chesterfield County and partnerships to address energy capacity demands with innovative technologies. Meanwhile, ByteDance, the owner of TikTok, has set a valuation exceeding $330 billion for its new employee share buyback program. The program offers employees $200.41 per share, marking a 5.5% increase from the previous offer six months ago.
Cantor Fitzgerald has maintained a Neutral rating on Alphabet, noting the company’s expansion of AI search capabilities. Alphabet’s AI Overviews feature now reaches over 2 billion monthly active users, up from 1.5 billion earlier this year. In the political arena, German Chancellor Friedrich Merz and French President Emmanuel Macron have reaffirmed their commitment to EU digital regulations despite criticism from U.S. President Donald Trump. This follows Trump’s announcement of potential tariffs on countries with digital taxes or regulations perceived as discriminatory against American technology.
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