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

Zhongshan Securities International published a research report indicating that Google Cloud, a subsidiary of Alphabet, recently secured an AI cloud contract with NATO, which will provide a dedicated secure cloud system to ensure that sensitive data is accessed only domestically. Additionally, AI will be utilized to assist NATO in data analysis and improving operational efficiency. Furthermore, reports suggest that Google is vying for a multi-billion dollar TPU order from Meta. These latest developments demonstrate that Google is committed to seizing market opportunities, and it is believed that its leadership in AI is solid, which may alleviate investors' 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 unlock significant unmonetized valuation potential in the cloud, autonomous driving, and AI+SAAS sectors. They reaffirmed their "Buy" rating on Alphabet, raising the target price from $360 to $390. (Jinshi)