No. of Recommendations: 4
Morningstar - The bottom line:
We raise our fair value estimate for wide-moat Alphabet to $450 from $433, and continue to view shares as attractively priced. We believe that investors are underappreciating the breadth and depth of Alphabet’s AI monetization and the rapid upcoming growth in Google Cloud.
We also believe that Alphabet’s vertical integration allows it to absorb AI costs better than peers. Its in-house TPUs, AI models, and co-design of hardware and software enable it to lower its total cost of ownership. As such, we view the cost-led bear argument against Alphabet to be manageable.
