Alphabet shares rise after TD Cowen raises price target citing tenfold data center capacity expansion by 2031.
Alphabet Inc. (NASDAQ:GOOGL) received a price target increase to $475 from $450 by TD Cowen, which maintained a Buy rating on the stock. The firm highlighted the company’s cloud computing business as a key growth driver, projecting a tenfold expansion in data center capacity between 2022 and 2031.
Shares of Alphabet have surged 108% over the past year and 17% year-to-date. TD Cowen’s analysis follows recent market discussions about Alphabet’s custom AI chips, though the firm’s outlook remains focused on cloud infrastructure growth.
The upgrade reflects confidence in Alphabet’s long-term cloud strategy, despite mixed sentiment around its AI hardware developments.