Google gets another thumbs up on AI, this time from Piper Sandler
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Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is collecting the analyst love over artificial intelligence.
Piper Sandler joined Morgan Stanley in calling the tech giant an AI winner, and reiterated a Buy rating on the stock. The firm noted that shares have outperformed even as an antitrust trial gets underway and the company increases infrastructure investment, including servers.
The stock is down 0.3% on Tuesday morning. 
âThe market may be telling us [that] new product opportunities are forthcoming; and [the] valuation remains undemanding,â Piper Sandler analysts Thomas Champion and James Callahan wrote in a note, tweaking its price target to $147 from $148.
The firm raised its outlook for capital expenditures and Google cloud revenue for the next two years.
âTo account for this potential, we raise '24E Cloud revenue +2% & '25E +5%,â the firm said. Not to be left behind, YouTube also looks strong based on the firmâs checks. 
Valuation is attractive
âWhile current valuation does not radiate AI winner, the bear case looks increasingly tenuous in our view,â the analysts said. 
Google (GOOG) (GOOGL) continues to maintain its mighty hold on search market share â as noted by Microsoft (MSFT) Chief Executive Officer Satya Nadella this week in testimony during Googleâs (GOOG) (GOOGL) antitrust proceedings.
âLooking ahead, we see an improving picture for core search and new cloud/AI revenue streams emerging,â Piper Sandler said.
Google (GOOG) (GOOGL) is up 50% this year. 

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