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Investment Bank Suggests That Alphabet (GOOG)’s Valuation Could Climb Significantly

Investment bank TD Cowen, focusing on the potential of Alphabet Inc. (NASDAQ:GOOG)’s Waymo, kept a $195 price target and a Buy rating on GOOG recently.

TD Cowen’s Analysis of Waymo

The investment bank predicts that the U.S. gross bookings of Waymo, Alphabet Inc. (NASDAQ:GOOG)’s self-driving subsidiary, will jump to $6.1 billion in 2034, up from $230 million this year. That equates to a compound annual growth rate of 44% during those years.

In light of those estimates, TD Cowen has assigned Waymo an enterprise value of $60 billion.

Other Assets Have Strong Potential

The company’s DeepMind/GenAI businesses are currently valued at $130 billion, but that number could rise, wrote TD Cowen, noting that OpenAI was recently assigned a valuation of $300 billion. Additionally, TD Cowen suggested that Alphabet Inc. (NASDAQ:GOOG)’s integration of GenAI in many of its businesses, along with its significant investments in GenAI, can boost its valuation.

Finally, Google’s cloud unit is currently valued at an enterprise value-to-sales ratio of just eight, based on its expected 2026 revenue, according to the investment bank. If the multiple increases to 11, in-line with the valuation of Microsoft’s (NASDAQ:MSFT) cloud business, Alphabet Inc. (NASDAQ:GOOG)’s total valuation would climb by about 7%, the investment bank estimated.

While we acknowledge the potential of GOOG as an investment, 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 GOOG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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