Market Focus on AI Bubble Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy GOOG?
Source: Fool
- Equity Market Analysis: In 2026, Oracle and Microsoft's poor stock performance is largely attributed to their significant reliance on OpenAI, with Oracle's $300 billion cloud computing agreement highlighting market concerns over an AI bubble.
- Debt Market Sentiment: Analysis of credit default swaps (CDS) reveals that the debt market is not particularly worried about default risks for Alphabet and Microsoft, but shows heightened concern for Oracle, indicating doubts about its earnings potential.
- OpenAI Funding Dynamics: OpenAI's recent funding round raised $122 billion, achieving a post-money valuation of $852 billion, suggesting that while investors are still willing to back AI growth, there are ongoing concerns about the costs associated with infrastructure development.
- Strategic Investment Choices: Given the current landscape, investors are advised to focus on well-funded companies like Alphabet that lead in engine model development, rather than Oracle, which is focused on building AI infrastructure for OpenAI.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 330.580
Low
255.00
Averages
336.08
High
400.00
Current: 330.580
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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