DA Davidson Raises Alphabet Price Target to $190, Maintains Neutral Rating

DA Davidson has raised its price target for Alphabet (NASDAQ: GOOGL) from $180 to $190 while maintaining a neutral rating, acknowledging the company's strong position in the competitive AI accelerator market with its Tensor Processing Units (TPUs), which are closing the performance gap with NVIDIA. Other analysts have also increased their price targets, with JMP Securities raising theirs to $225 and Westpark Capital to $220, both giving buy ratings, while Truist Financial reissued a buy rating at $200. Alphabet recently reported quarterly earnings that beat expectations, with $2.31 earnings per share and revenues of $96.43 billion, reflecting strong profitability with a net margin of 31.12%. The company has garnered a consensus rating of moderate buy from analysts, with an average price target of approximately $211.79. DA Davidson's research suggests that external demand for Google's TPU systems could be significant, especially from advanced AI labs, highlighting Alphabet's competitive edge in AI hardware. Overall, the stock is viewed positively by many analysts despite DA Davidson's neutral stance, driven by strong earnings and promising AI technology developments.