Intel stock extends gains after report of possible U.S. government stake
On Friday, Truist Securities maintained its Buy rating on Alphabet stock (NASDAQ:GOOGL), with a steady price target of $200.00. The endorsement comes as Alphabet, currently trading at $159.28 with a market capitalization of $1.95 trillion, reported robust first quarter results for 2025, showcasing continued progress in key areas such as Search, YouTube (YT), and Cloud services. According to InvestingPro analysis, the company appears undervalued despite its strong financial health score of 3.25 out of 5. The company’s performance appears unaffected by the increasing competition in artificial intelligence (AI) or any broader economic downturn.
Analysts noted Alphabet’s recognition of potential challenges ahead, despite not providing specific guidance. While the company anticipates headwinds to growth in the second quarter and second half of 2025, InvestingPro data shows impressive revenue growth of 13.87% in the last twelve months. The company anticipates challenges due to difficult year-over-year comparisons in its Financials segment and the Retail sector, following the removal of the de minimis exemption. For deeper insights into Alphabet’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Alphabet’s Search platform is showing positive signs, with heightened user engagement and a rise in monetizable advertisements within its AI-powered offerings. The company’s position in the AI landscape was highlighted, with the belief that Alphabet continues to lead the race in this domain.
The analyst’s commentary suggests that AI technology is poised to broaden the total addressable market (TAM) for Alphabet’s Search and Cloud segments. This expansion is expected to sustain growth and generate increased value for shareholders. The positive outlook reflects confidence in Alphabet’s ability to capitalize on AI advancements and maintain its market dominance.
In other recent news, Alphabet reported first-quarter earnings with approximately 12% revenue growth, surpassing Wall Street expectations by about 3%. The company’s EBITDA also exceeded estimates by roughly 7%, with strong performances from its YouTube and Search segments, although the Cloud division fell slightly short. Following these results, Piper Sandler and KeyBanc Capital Markets both raised their price targets for Alphabet to $195, maintaining an Overweight rating, while RBC Capital Markets reiterated an Outperform rating with a $200 target. DA Davidson maintained a Neutral rating with a $160 target, noting a slowdown in growth for Alphabet’s advertising and Google Cloud segments despite positive earnings. Alphabet’s AI initiatives, including the TPU Ironwood and Gemini 2.5 Pro Experimental, are expected to drive future growth, according to DA Davidson.
Additionally, Guggenheim reiterated a Buy rating with a $190 price target, highlighting Alphabet’s trading value at a discount compared to the S&P 500 and broader technology sector. Guggenheim’s analysis suggests that Alphabet’s diversification into AI, consumer video and audio, cloud computing, and autonomous vehicles is not fully recognized by the market. Alphabet also announced a 5% increase in its annual dividend and a $70 billion share repurchase program, indicating confidence in its financial health. These developments reflect a mix of cautious optimism and confidence in Alphabet’s strategic initiatives and growth potential.
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