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This ‘Magnificent 7’ Stock Earns a ‘Perfect 10’ Score — What’s Driving the Optimism This Time?

This ‘Magnificent 7’ Stock Earns a ‘Perfect 10’ Score — What’s Driving the Optimism This Time?

Alphabet (GOOGL), one of the Magnificent 7 stocks, has now earned a “Perfect 10” Smart Score on TipRanks. The Smart Score uses AI to combine analyst ratings, insider activity, technical signals, and key financial data to rate stocks on a scale of 1 to 10. A score of 10 is the highest possible and suggests the stock is likely to outperform the market.

TipRanks Black Friday Sale

The top score reflects analyst support, hedge fund buying, bullish news sentiment, and positive technical signals for GOOGL stock.

AI Momentum Fuels Confidence

Much of the renewed excitement comes from Google’s new moves in AI. The company is reportedly in talks to sell its own TPU chips to Meta (META), and that news helped lift the stock this week. It also put pressure on rivals like Nvidia (NVDA) and Advanced Micro Devices (AMD). The newest TPU chip is said to be 30 times more power-efficient than the 2018 version, which could make Google Cloud appealing to companies looking for cheaper and faster AI computing.

Google’s newest AI model, Gemini 3, has also added to the momentum. Developers say it performs about 17% better than competing models when writing code or handling complex instructions.

Analysts praised its speed and reasoning ability, noting it has done well in recent tests.

Waymo Expansion Adds to Growth Story

Alphabet’s self-driving unit, Waymo, is also getting more attention as the robotaxi market grows. The company plans to test its ride-hailing service in three new U.S. cities, which is another step toward a wider launch. These new routes will help Waymo gather more real-world driving data, improve safety, and refine its maps before a full rollout.

This progress puts more pressure on Tesla (TSLA) and other rivals, while giving Alphabet another possible revenue stream beyond ads, search, and cloud.

Top Analyst Upgrades Google to Buy  

Recently, Loop Capital analyst Rob Sanderson upgraded the stock from Hold to Buy and also raised the price target to $320 from $260 per share. 

Sanderson said earlier concerns about AI disrupting Google Search have eased, as recent results show stronger engagement and steady growth. He also pointed to rising adoption of Gemini and ongoing momentum in Google Cloud, helped by larger enterprise deals and Google’s in-house AI chips. Together, these trends give him more confidence in Alphabet’s long-term growth. 

Institutional Support and Technical Signals Boost Confidence

The Perfect 10 score is also supported by strong institutional interestHedge funds added nearly 14.7 million GOOGL shares last quarter, reflecting growing conviction from large investors. To add to it, Berkshire Hathaway (BRK.B), the holding company of legendary investor Warren Buffett, recently disclosed a new $4.3 billion position in the stock during the third quarter. Once the filing became public, Alphabet shares rose sharply.

On the technical side, momentum remains positive. According to TipRanks’ technical analysis tool, Google stock is currently on an upward trend. The stock’s 20-day Exponential Moving Average (EMA) is 291.20, while its price is $319.95, implying a bullish signal.

Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a stock’s price between the current price and the price from a specific number of periods ago. Typically, an ROC above zero confirms an uptrend. Alphabet currently has an ROC of 12.36, which signals a Buy.

Is GOOGL Stock a Buy Now? 

The stock of Alphabet has a consensus Strong Buy rating among 38 Wall Street analysts. That rating is based on 31 Buy and seven Hold recommendations issued in the last three months. The average GOOGL price target of $312.00 implies 2.48% downside from current levels.

Read more analyst ratings on GOOGL stock

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