Move Over, Nvidia! These Analysts Are Betting on Another Tech Stock for the World’s No. 1 Spot.

Core Viewpoint - MoffettNathanson believes Alphabet (GOOG) (GOOGL) should surpass Nvidia (NVDA) as the world's most valuable company, raising its price target for GOOGL stock to $295, indicating a 20% upside from current levels [1] Group 1: Competitive Advantages - Alphabet is seen as the leader in the AI race due to its strengths in multimodal search, accelerating cloud growth, improved YouTube monetization, and the developing Waymo business [1] - Google's regulatory challenges are diminishing, with a recent antitrust ruling being less severe than anticipated [2] - Concerns regarding ChatGPT are overstated, as initial data suggests AI chatbots are enhancing search usage rather than replacing it [2] Group 2: Cloud and AI Growth - Google Cloud is projected to achieve a 33% growth by 2025, with nine of the top ten AI labs utilizing its platform [3] - Google Cloud generates $50 billion in annual revenue, positioning it competitively against Amazon's AWS and Microsoft's Azure [5] - Google processes twice as many AI tokens as other cloud providers in half the time, showcasing its significant volume advantage [6] Group 3: Monetization and Future Prospects - YouTube is on the verge of a monetization breakthrough, aided by new AI tools that will enhance brand partnerships and commerce features [4] - Waymo presents a long-term growth opportunity as it expands operations across U.S. cities [4] - Despite recent stock gains, GOOGL remains relatively undervalued compared to its historical performance and peers [4]