Investment banks praise Alphabet as the "king of all AI investments," with a target price as high as $370

Glonghui January 9th｜Wall Street investment bank Cantor Fitzgerald released a report, upgrading the rating of Google’s parent company Alphabet from “Neutral” to “Overweight,” setting a target price of $370, and calling it “the king of all AI investments.” Analyst Deepak Mathivanan pointed out that Google’s advantage lies in its presence across the entire AI technology stack, covering infrastructure, computing, large language models, and application layers, enabling the company to accelerate the release of AI asset value and reap the benefits over the next two to three years thanks to its extensive layout. In terms of search business, Google is integrating AI Overviews and AI models into the search experience, which is driving accelerated growth in query volume. The analyst expects that, over time, as AI answers become more comprehensive and user conversion rates improve, the monetization efficiency of AI search results will surpass traditional search results. Competition between Google’s Gemini and OpenAI’s ChatGPT will remain fierce through 2026. The analyst believes that in the next 12 to 18 months, both chatbots have the opportunity to grow to more than 1 billion active users. In the cloud business, the analyst is optimistic that Google Cloud will significantly increase its market share this year, and predicts that its revenue could reach 60% of Amazon’s cloud revenue by 2027, up from just over 40% in 2024. The main catalyst is the substantial increase in collaboration deals between Google Cloud and major AI labs such as Anthropic, OpenAI, and Meta Platforms. As more capacity comes online, these orders will gradually convert into actual revenue.