Alphabet (Googl) shares have been soaked to finish the week after announcing a $4 billion funding venture for an AI data center in Arkansas. The funding will contribute to Google’s first data center in the state in West Memphis, along with cloud and AI infrastructure and local programs to increase energy resilience and affordability for local residents. Despite good news about AI development, Google shares fell 2% last week.
The company has also announced it will launch a $25 million energy impact fund to help residents in Crittenden County and surrounding areas expand its energy efficiency and affordability initiatives.
Luckily, Wall Street analysts have given Google stock a positive rating, and are forecasting profits first through AI initiatives. Nuveen’s Chief Investment Officer Saira Malik said in CNBC’s recent program that Alphabet Inc. remains a leader in the AI field. “When you look at the alphabet, people are worried about what the impact of Openai will be on Google’s ad business and Genesis. I don’t think the impact is as great as people think. It has advantages from Waymo and YouTube businesses.”
Several other analysts have also published bullish research reports on the alphabet (GOOGL). Pivotal Research raised its price target for Alphabet from $245.00 to $300.00, giving it a “buy” rating in its research report on Wednesday, September 3rd. Of the 73 analysts surveyed by CNN, 82% rate GOOGL as a buy, while 0% choose to sell. Jefferies has raised the company’s price target at Alphabet (GOOGL) from $230 to $285, maintaining its stock purchase rating. At the time of press, the stock is trading near the top of the 52-week range and above the 200-day simple moving average.
