Google parent company Alphabet (GOOGL) should be the world’s most valuable company, not Nvidia (NVDA), declares Wall Street brokerage MoffettNathanson in a note to clients.
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Michael Nathanson, a top four-star-rated analyst, says that fading regulatory risks, accelerating artificial intelligence (AI) momentum, and multiple growth drivers mean that Alphabet should be ahead of Nvidia when it comes to market capitalization.
MoffettNathanson reiterated a Buy rating on GOOGL stock and raised its price target on the shares to $295, which is 19% above current levels. “Alphabet emerges as one of the net winners in the AI race and remains the best-positioned company to monetize and scale GenAI opportunities,” wrote Nathanson.
Pecking Order
Currently, Alphabet is the fourth most valuable U.S. publicly traded company behind Nvidia, Microsoft (MSFT), and Apple (AAPL). Nvidia holds the crown as the most valuable American company with a market cap of $4.31 trillion. By comparison, Alphabet’s current market capitalization is just under $3 trillion.
Nathanson sees more growth ahead for Alphabet, citing four areas where AI will separate the technology giant from its peers and rivals. Those areas include leadership in multimodal search, accelerating cloud growth, improving YouTube monetization, and the emergence of the Waymo self-driving car unit. He argued that Alphabet’s major drags, i.e., the U.S. antitrust case and concerns over ChatGPT, have lifted.
“This combination of market leadership, diversification, and scale positions Alphabet not only as a winner in the GenAI era but as a company that should rightly be considered for the title of most valuable company in the world,” wrote the analyst. GOOGL stock has gained 30% this year.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 28 Buy and nine Hold recommendations issued in the last three months. The average GOOGL price target of $242.06 implies 1.65% downside from current levels.
