Shares in Alphabet (GOOGL) dipped to end the week after the company announced a $4B funding venture for AI data centers in Arkansas. The funding will contribute to Google’s first data center in the state — located in West Memphis — along with cloud and AI infrastructure, and local programs to increase energy resilience and affordability for local residents. Despite the good news for AI development, GOOGL stock is down 2% over the last week.
The company also announced it is launching a $25 million Energy Impact Fund to help scale energy efficiency and affordability initiatives for residents in Crittenden County and the surrounding area.
Fortunately, Wall Street analysts are giving positive ratings to GOOGL shares, forecasting gains ahead due to the AI efforts. Saira Malik, chief investment officer at Nuveen, said in a recent program on CNBC that Alphabet Inc. continues to be a leader in the AI space. “Looking at Alphabet, people are worried about what the impact of OpenAI will be on Google’s advertising business and genesis. I think the impact is not going to be as great as people think, and you have the upside from Waymo and their YouTube business.”
Also Read: Alphabet: How Search, Cloud Business May Boom GOOGL Stock
Several other analysts have also issued bullish research reports about Alphabet (GOOGL). Pivotal Research lifted its price target on Alphabet from $245.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, September 3rd. Out of 73 analysts surveyed by CNN, 82% rate GOOGL as a buy, while 0% are opting to sell. Jefferies raised the firm’s price target on Alphabet (GOOGL) to $285 from $230 and keeps a Buy rating on the shares. At press time, the stock is trading near the top of its 52-week range and above its 200-day simple moving average.