Zhongshan Securities raised the target price for Google's parent company Alphabet, optimistic about its AI and cloud business monetization potential.

According to Deep Tide TechFlow news, on November 26, China Merchants Securities International published a research report stating that Google Cloud, a subsidiary of Alphabet, recently obtained an AI cloud contract with NATO, which will provide a dedicated secure cloud system to ensure that sensitive data is only accessed domestically, while also utilizing AI to assist NATO in data analysis and improving operational efficiency. Additionally, there are reports that Google is vying for a multi-billion dollar TPU order from Meta. These latest developments demonstrate that Google is committed to capturing market opportunities, and it is believed that its leadership position in AI is solid, potentially alleviating investor concerns about competition. The firm continues to believe that tech giants like Google are in a favorable position for sustainable AI development and looks forward to seeing Google expand its business beyond search advertising or release significant unmonetized valuation potential in the fields of cloud, autonomous driving, and AI+SAAS, reaffirming a “Buy” rating for Alphabet, with a target price raised from $360 to $390. ( Jin10 )