Zacks Analyst Blog Features Alphabet, IBM, Merck, SandRidge Energy, and NeurAxis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2025
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
Featured Stocks: Zacks.com highlights stocks such as Alphabet Inc., IBM Corp., Merck & Co., SandRidge Energy, and NeurAxis in their Analyst Blog, providing insights into their recent performance and market trends.
Research Reports: The Zacks Research Daily includes detailed reports on 16 major stocks, emphasizing Alphabet's growth in AI and cloud services, IBM's focus on hybrid cloud and AI, Merck's challenges with drug competition, and the promising outlook for micro-cap stocks SandRidge and NeurAxis.
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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: 303.940
Low
255.00
Averages
336.08
High
400.00
Current: 303.940
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.
Three AI Stocks Leading Growth Investment
- Market Leader: Nvidia commands approximately 90% of the GPU market, benefiting significantly from AI infrastructure spending due to its cutting-edge chip designs and CUDA software platform, which are expected to drive long-term growth for the company.
- Cost Advantage: Alphabet gains a structural cost advantage by designing its own TPU chips, allowing it to train and run AI models more cheaply than competitors, while also starting to lease TPUs at scale, creating a new revenue stream.
- Industry Monopoly: Taiwan Semiconductor Manufacturing, as the leading chip manufacturer globally, has established a de facto monopoly in advanced chip production due to its unmatched technological expertise and scale, and is expected to maintain strong pricing power moving forward.
- Long-term Investment Value: All three companies trade at reasonable forward P/E ratios, with Nvidia at 23.5, Alphabet at 26.5, and TSMC at 25.5, indicating their potential for long-term investment in the rapidly growing AI market.
See More
Nvidia and Others Poised for Growth from AI Infrastructure Expansion
- Surge in AI Infrastructure Investment: The five largest hyperscalers have committed to spending $700 billion by 2025 to expand cloud capacity, a figure exceeding the GDP of 24 countries, indicating strong demand for AI infrastructure that will drive growth for related companies.
- Nvidia's Market Dominance: Nvidia holds approximately 90% of the GPU market share, with its chips being the primary processors for AI workloads; its cutting-edge chip designs and CUDA software platform have established a strong moat, positioning the company to benefit from the ongoing AI boom.
- Alphabet's Technological Edge: Alphabet boasts the most complete AI tech stack, including the leading large language model Gemini and proprietary TPU chips, enabling it to train and run AI models at lower costs, thereby reinforcing its market leadership.
- TSMC's Growth Potential: As the world's leading chip manufacturer, TSMC is significantly ramping up production capacity and plans to raise prices over the next four years; with its technological expertise and scale, it is expected to maintain a crucial role in the booming AI infrastructure market.
See More
Adani Group to Invest $100 Billion in AI Data Centers Amid Strategic Partnerships
- Massive Investment: Adani Group announced a $100 billion investment by 2035 to develop renewable energy-powered AI data centers, aiming to establish the world's largest integrated data center platform, showcasing its ambition in green technology.
- Significant Economic Impact: This investment is projected to generate an additional $150 billion in revenue for India across server manufacturing, advanced infrastructure, and cloud platforms, creating a $250 billion AI infrastructure ecosystem that will drive national economic growth.
- Strategic Partnerships: Adani's plans are backed by strategic partnerships with Google and Microsoft, highlighting its significant position among global tech giants, while also engaging in discussions with other major players to establish large campuses across India.
- AI Investment Surge: The announcement was made during India's AI Impact Summit, reflecting India's status as a hotspot for AI investment, attracting attention from startups like OpenAI and Anthropic, further driving technological innovation and market competition.
See More
U.S. Develops Online Portal to Bypass Censorship
- Portal Development: The U.S. State Department is developing an online portal named “freedom.gov” aimed at providing access to content banned by European and other governments, intending to bypass censorship and enhance the flow of information.
- Content Scope: The portal will include purported hate speech and terrorist propaganda, reflecting the U.S. stance on global information freedom while potentially sparking international controversy and debate.
- Technical Measures Exploration: Officials are considering adding a VPN feature to the site to make users' traffic appear as if it originated from the U.S., thereby protecting user privacy and avoiding monitoring, indicating a focus on user security.
- Announcement Delay: The project was scheduled for announcement at last week's Munich Security Conference but was postponed for undisclosed reasons, with some State Department officials expressing concerns about the plan, which may impact its progress and implementation.
See More
Hyperscalers Drive AI Infrastructure Spending
- Infrastructure Investment Surge: In 2023, hyperscalers are projected to spend $700 billion on infrastructure, a 70% year-over-year increase, indicating rapid expansion in the AI market and strong demand for semiconductors, which could drive stock prices of related companies higher.
- Market Dominance: Companies like Amazon, Microsoft, Google, Meta, and Oracle control 70% of the AI market, highlighting their critical role in driving the commercialization of AI technologies, which may influence investment directions across the industry.
- ROI Concerns: Despite the ongoing increase in infrastructure spending by hyperscalers, concerns about return on investment (ROI) remain a focal point, with analysts noting that the lack of clear business models could negatively impact future investment decisions.
- Technological Innovation and Competition: As AI technology rapidly evolves, companies like Nvidia are leading the market with gross margins as high as 70%, demonstrating strong pricing power and competitive advantage, which may attract more investor interest in their future growth potential.
See More
AI Development Raises Alarming Human Risks, Experts Warn
- Existential Risks: Stuart Russell, a professor at UC Berkeley, warns that unchecked competition among tech companies could pose existential threats to humanity, particularly through job displacement and misuse for surveillance, highlighting a severe neglect of social responsibility.
- Industry Leaders' Concerns: OpenAI CEO Sam Altman has publicly acknowledged that AI could threaten human survival, while Anthropic cautioned that its chatbot models might be nudged towards supporting criminal activities like chemical weapon development, reflecting deep concerns about potential technology misuse within the industry.
- Speed of Technological Revolution: Russell compares the AI revolution to the Industrial Revolution but asserts it is ten times faster and larger, emphasizing its critical role across Google's businesses, including Search, Cloud, and Waymo, indicating a profound transformation in business models.
- Future Outlook: Google DeepMind CEO Demis Hassabis predicts that artificial general intelligence could arrive within the next five years, potentially having ten times the impact of the Industrial Revolution within a decade, underscoring the urgency and importance of responsible AI management.
See More
Three AI Stocks Leading Growth Investment
- Market Leader: Nvidia commands approximately 90% of the GPU market, benefiting significantly from AI infrastructure spending due to its cutting-edge chip designs and CUDA software platform, which are expected to drive long-term growth for the company.
- Cost Advantage: Alphabet gains a structural cost advantage by designing its own TPU chips, allowing it to train and run AI models more cheaply than competitors, while also starting to lease TPUs at scale, creating a new revenue stream.
- Industry Monopoly: Taiwan Semiconductor Manufacturing, as the leading chip manufacturer globally, has established a de facto monopoly in advanced chip production due to its unmatched technological expertise and scale, and is expected to maintain strong pricing power moving forward.
- Long-term Investment Value: All three companies trade at reasonable forward P/E ratios, with Nvidia at 23.5, Alphabet at 26.5, and TSMC at 25.5, indicating their potential for long-term investment in the rapidly growing AI market.
See More
Nvidia and Others Poised for Growth from AI Infrastructure Expansion
- Surge in AI Infrastructure Investment: The five largest hyperscalers have committed to spending $700 billion by 2025 to expand cloud capacity, a figure exceeding the GDP of 24 countries, indicating strong demand for AI infrastructure that will drive growth for related companies.
- Nvidia's Market Dominance: Nvidia holds approximately 90% of the GPU market share, with its chips being the primary processors for AI workloads; its cutting-edge chip designs and CUDA software platform have established a strong moat, positioning the company to benefit from the ongoing AI boom.
- Alphabet's Technological Edge: Alphabet boasts the most complete AI tech stack, including the leading large language model Gemini and proprietary TPU chips, enabling it to train and run AI models at lower costs, thereby reinforcing its market leadership.
- TSMC's Growth Potential: As the world's leading chip manufacturer, TSMC is significantly ramping up production capacity and plans to raise prices over the next four years; with its technological expertise and scale, it is expected to maintain a crucial role in the booming AI infrastructure market.
See More
Adani Group to Invest $100 Billion in AI Data Centers Amid Strategic Partnerships
- Massive Investment: Adani Group announced a $100 billion investment by 2035 to develop renewable energy-powered AI data centers, aiming to establish the world's largest integrated data center platform, showcasing its ambition in green technology.
- Significant Economic Impact: This investment is projected to generate an additional $150 billion in revenue for India across server manufacturing, advanced infrastructure, and cloud platforms, creating a $250 billion AI infrastructure ecosystem that will drive national economic growth.
- Strategic Partnerships: Adani's plans are backed by strategic partnerships with Google and Microsoft, highlighting its significant position among global tech giants, while also engaging in discussions with other major players to establish large campuses across India.
- AI Investment Surge: The announcement was made during India's AI Impact Summit, reflecting India's status as a hotspot for AI investment, attracting attention from startups like OpenAI and Anthropic, further driving technological innovation and market competition.
See More
U.S. Develops Online Portal to Bypass Censorship
- Portal Development: The U.S. State Department is developing an online portal named “freedom.gov” aimed at providing access to content banned by European and other governments, intending to bypass censorship and enhance the flow of information.
- Content Scope: The portal will include purported hate speech and terrorist propaganda, reflecting the U.S. stance on global information freedom while potentially sparking international controversy and debate.
- Technical Measures Exploration: Officials are considering adding a VPN feature to the site to make users' traffic appear as if it originated from the U.S., thereby protecting user privacy and avoiding monitoring, indicating a focus on user security.
- Announcement Delay: The project was scheduled for announcement at last week's Munich Security Conference but was postponed for undisclosed reasons, with some State Department officials expressing concerns about the plan, which may impact its progress and implementation.
See More
Hyperscalers Drive AI Infrastructure Spending
- Infrastructure Investment Surge: In 2023, hyperscalers are projected to spend $700 billion on infrastructure, a 70% year-over-year increase, indicating rapid expansion in the AI market and strong demand for semiconductors, which could drive stock prices of related companies higher.
- Market Dominance: Companies like Amazon, Microsoft, Google, Meta, and Oracle control 70% of the AI market, highlighting their critical role in driving the commercialization of AI technologies, which may influence investment directions across the industry.
- ROI Concerns: Despite the ongoing increase in infrastructure spending by hyperscalers, concerns about return on investment (ROI) remain a focal point, with analysts noting that the lack of clear business models could negatively impact future investment decisions.
- Technological Innovation and Competition: As AI technology rapidly evolves, companies like Nvidia are leading the market with gross margins as high as 70%, demonstrating strong pricing power and competitive advantage, which may attract more investor interest in their future growth potential.
See More
AI Development Raises Alarming Human Risks, Experts Warn
- Existential Risks: Stuart Russell, a professor at UC Berkeley, warns that unchecked competition among tech companies could pose existential threats to humanity, particularly through job displacement and misuse for surveillance, highlighting a severe neglect of social responsibility.
- Industry Leaders' Concerns: OpenAI CEO Sam Altman has publicly acknowledged that AI could threaten human survival, while Anthropic cautioned that its chatbot models might be nudged towards supporting criminal activities like chemical weapon development, reflecting deep concerns about potential technology misuse within the industry.
- Speed of Technological Revolution: Russell compares the AI revolution to the Industrial Revolution but asserts it is ten times faster and larger, emphasizing its critical role across Google's businesses, including Search, Cloud, and Waymo, indicating a profound transformation in business models.
- Future Outlook: Google DeepMind CEO Demis Hassabis predicts that artificial general intelligence could arrive within the next five years, potentially having ten times the impact of the Industrial Revolution within a decade, underscoring the urgency and importance of responsible AI management.
See More
