Google Cloud Poised for Massive Growth Amid Alphabet Stock Slump
Alphabet's stock has been struggling this summer, falling behind its AI competitors OpenAI and Anthropic. The company's performance is also being impacted by Meta's new AI agent, which increases competition in the market.
The analyst maintains a Buy rating for Alphabet, viewing the current stock price as a good entry point before a potential turnaround driven by TPU sales and infrastructure growth.
Google Cloud, which offers better price-performance and potential revenue growth beyond advertising, is shifting focus to this area. Wall Street projects Google Cloud could generate up to $730 billion in revenue by 2028.