Brian Nowak, an analyst from Morgan Stanley, maintained the Buy rating on Alphabet Class A (GOOGL – Research Report). The associated price target remains the same with $185.00.
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Brian Nowak has given his Buy rating due to a combination of factors related to Alphabet’s strategic positioning in the cloud computing market. The potential agreement between Google Cloud and OpenAI is a significant development, as it could drive further acceleration in Google Cloud’s growth. This partnership, if confirmed, would add a leading AI player as a customer, which is a notable achievement for Google Cloud.
Moreover, the agreement highlights Google Cloud’s competitive advantage in compute capacity, which is crucial for supporting the growing needs of AI companies like OpenAI. This move signals confidence in Google’s long-term position in the search and cloud markets. Despite Google Cloud’s substantial growth, it has not consistently outperformed its larger competitors, AWS and Azure, making this potential partnership an important opportunity for Alphabet to gain market share and demonstrate its technological capabilities.
In another report released on June 5, Bank of America Securities also maintained a Buy rating on the stock with a $200.00 price target.