Google’s parent company Alphabet (NASDAQ: GOOG) has found a new revenue stream that could inadvertently make its stock price rise. While everyone is worrying about tech giants spending billions to build AI, Google is offsetting it by renting out its custom AI chips to Meta in a billion-dollar deal. This changes the view on how traders look at GOOG vs its spending.
Similar to Nvidia, Google is becoming an AI-infrastructure provider and is making other tech firms depend on it for services. This puts Alphabet’s Google stock on the right path as it is not only spending money on AI, but it is also receiving an income stream through it. The search giant is no longer spending money, but is creating revenue diversification through AI.
Also Read: Apple Dips 3.2% but MoffettNathanson Boosts Target to $270: $300 Next?
Will Google Stock Remain Trading at $300 or Fall to $280?
Google’s Alphabet stock is at a major risk of a crash on Monday due to the ongoing Israel-Iran-US conflict. The Asian stock market remained in the deep red throughout the trading session, leading to losses worth billions. Hong Kong’s Hang Seng plunged the most with a 2.15% drop, while Japan’s Nikkei fell 1.35%. India’s Sensex saw a decline of 1.30% and briefly fell below the 79,900 range.
The US stock market could also head south after the opening bell, including Google’s Alphabet stock. It is holding steady above the $300 level, closing Friday’s bell at $311. If it fails to hold on to the momentum and falls prey to the ongoing crisis, a crash to the $290 range is inevitable. However, institutional giants could accumulate GOOG if the stock falls below the $300 level.
It is best to accumulate Google’s Alphabet stock when it dips to the $280 to $290 range. An upsurge is on the cards when the conflict cools down, and the market returns to normal. Taking an entry position when it’s about to bottom out in price could prove beneficial for traders.