Alphabet (GOOGL) Buy Rating Reaffirmed by Goldman Sachs, Citing Cloud and AI Momentum

Alphabet Inc. (NASDAQ:GOOGL) is one of the best ESG stocks to buy now according to hedge funds. On September 10, Goldman Sachs analyst Eric Sheridan maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with an unchanged price target of $234.

Alphabet (GOOGL) Buy Rating Reaffirmed by Goldman Sachs, Citing Cloud and AI Momentum

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Sheridan highlighted Alphabet’s strength in cloud and AI as central to its growth outlook. He argues that enterprises are increasingly adopting AI-based cloud tools to bolster their workflows, and the company should be able to capitalize on this demand through its wide portfolio of cloud services. This demand thus indicates a growing migration pipeline, implying strong growth for Alphabet Inc. (NASDAQ:GOOGL).

The analyst also emphasized the company’s scalable, cost-efficient AI systems and diversified revenue base, with 13 product lines each generating more than $1 billion annually.

The analyst also believes that Alphabet Inc.’s (NASDAQ:GOOGL) efforts to broaden enterprise access to a broad portfolio of AI models reinforce its positioning as a long-term growth leader in large-cap tech.

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware.

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.