CNBC Daily Open: AI Faces Ongoing Challenges, Yet Some Analysts Predict Year-End Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Should l Buy GOOG?
Source: CNBC
Nasdaq Performance: The Nasdaq Composite fell 0.84% due to a sell-off in technology stocks, with major companies like Apple, Meta, and Nvidia facing declines, raising concerns about high valuations and future growth expectations.
Nvidia's Earnings Outlook: Nvidia's CEO announced significant business prospects for 2025 and 2026, but analysts warn that any disappointing guidance in their upcoming earnings report could negatively impact the stock market.
Market Predictions: Despite recent tech sell-offs, some analysts believe a year-end rally in equities is likely, with HSBC suggesting a greater chance of a market surge than a collapse of the AI bubble.
International Developments: India plans to import nearly 10% of its liquefied petroleum gas from the U.S. to strengthen ties, while Switzerland's new trade deal with the U.S. faces criticism from local political groups.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 331.330
Low
255.00
Averages
336.08
High
400.00
Current: 331.330
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.
Google Cloud Revenue Soars 48%, Analyzing AI Stock Investment Prospects
- Earnings Beat: Alphabet's Q4 2025 results exceeded Wall Street estimates with a 2.4% revenue surprise and a 6.8% earnings outperformance, reflecting strong financial performance despite a 6.5% stock drop post-report.
- Cloud Business Surge: Google Cloud's sales surged 48% year-over-year to $17.7 billion, representing 15.5% of Alphabet's total revenue, while operating income soared 154% to $5.3 billion, indicating robust growth potential in the AI sector.
- Market Reaction Analysis: Although Alphabet lost approximately $250 billion in market value over three days due to concerns over massive AI infrastructure spending, it remains the top performer among the
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Google Cloud Revenue Soars 48%, Analysts Weigh In
- Google Cloud Performance: Google Cloud's revenue surged 48% in the December quarter to $17.7 billion, significantly exceeding the $16.2 billion consensus estimate, highlighting its robust performance in AI, although investor reactions to the stock's rally have been muted.
- Competitive Landscape Shift: Since the launch of the Gemini 3 model in November, Google has secured a cloud partnership with Apple, leveraging its AI capabilities to drive business growth, while Amazon faces competitive disadvantages due to its lack of in-house AI operations.
- Investor Sentiment Fluctuations: Despite Amazon and Microsoft's cloud units also beating expectations, the size of their beats failed to impress investors, leading to post-earnings selloffs, with DA Davidson downgrading Amazon to 'Neutral'.
- Increased Capital Expenditures: Google plans to double its capital expenditures this year, marking the largest increase among Big Tech peers, and while its stock has rallied about 65% over the past six months, analysts remain cautious about its future upside potential.
See More
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- Hardware Companies Surge: Companies like Nvidia, Broadcom, and Taiwan Semiconductor are profiting from AI demand, with Nvidia's GPUs being the preferred choice for AI workloads; AI spending is projected to reach $3 trillion to $4 trillion by 2030, indicating significant market potential.
- Cloud Computing Market Expansion: Major cloud providers such as Amazon, Google, and Microsoft are heavily investing in data centers to meet the demand for computing power from AI developers, with Microsoft Azure achieving a growth rate of 39% in Q2 FY 2026, showcasing its competitive edge in the market.
- Recurring Revenue Stream: The rental model of cloud computing provides these companies with a continuous revenue stream; while they need to regularly replace computing units, the initial investment in infrastructure is already covered, leading to a substantial increase in future profitability.
- Intensifying Market Competition: As AI hardware and cloud computing rapidly evolve, competition among related companies will intensify, prompting investors to monitor these firms' performance in technological innovation and market share.
See More
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- Market Demand Growth: AI computing hardware demand is expected to surge through 2030, with cloud computing companies being key drivers, indicating that AI remains a leading investment theme attracting significant capital inflows.
- Hardware Investment Opportunities: Companies like Nvidia, Broadcom, and Taiwan Semiconductor are excelling in the AI hardware space, with Nvidia's GPUs widely used for AI workloads, known for their high performance despite higher costs, while Broadcom's ASIC designs offer more cost-effective solutions, with AI semiconductor revenue expected to double by Q1 2026.
- Cloud Computing Infrastructure: Amazon, Google, and Microsoft are the major cloud providers, with Microsoft Azure achieving a 39% growth rate in Q2 FY 2026; although AWS is growing slower, all three are actively investing in data centers to meet rising demand, ensuring a continuous revenue stream.
- Long-Term Investment Potential: With AI spending projected to reach $3 trillion to $4 trillion by 2030, the combination of cloud computing and AI hardware presents enormous long-term return potential for investors, especially as infrastructure builds out, significantly enhancing profitability.
See More
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- Legislative Proposal Potential: Deputy Prime Minister Karel Havlicek indicated that the government is seriously considering legislative action, with a proposal potentially introduced this year if the cabinet agrees, signaling a significant policy shift regarding children's social media use in the Czech Republic.
- European Trend: The discussions in the Czech Republic align with trends in other European countries, as Spain, Greece, Britain, and France also explore stricter rules on teenage social media use, reflecting a reassessment of the impact of digital platforms on children's well-being.
- Tech Giants Push Back: Following Australia's precedent of banning social media access for users under 16, tech giants like Elon Musk's X complied swiftly, indicating strong industry pushback against youth social media bans and the challenges of implementing such regulations.
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- Cloud Computing Surge: Google Cloud's revenue skyrocketed by 48% year-over-year in Q4 2025, significantly outpacing Microsoft's Azure at 39%, which not only underscores its leadership in the cloud sector but also highlights the competitive edge of its AI tools, positioning it as a top cloud platform in the market.
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- Optimal Buying Opportunity: Given Alphabet's robust financial performance and diversified investment portfolio, now may be an excellent time for investors to increase their holdings in its stock, especially amidst market fluctuations where Alphabet's fundamentals remain strong.
See More
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- Earnings Beat: Alphabet's Q4 2025 results exceeded Wall Street estimates with a 2.4% revenue surprise and a 6.8% earnings outperformance, reflecting strong financial performance despite a 6.5% stock drop post-report.
- Cloud Business Surge: Google Cloud's sales surged 48% year-over-year to $17.7 billion, representing 15.5% of Alphabet's total revenue, while operating income soared 154% to $5.3 billion, indicating robust growth potential in the AI sector.
- Market Reaction Analysis: Although Alphabet lost approximately $250 billion in market value over three days due to concerns over massive AI infrastructure spending, it remains the top performer among the
See More
Google Cloud Revenue Soars 48%, Analysts Weigh In
- Google Cloud Performance: Google Cloud's revenue surged 48% in the December quarter to $17.7 billion, significantly exceeding the $16.2 billion consensus estimate, highlighting its robust performance in AI, although investor reactions to the stock's rally have been muted.
- Competitive Landscape Shift: Since the launch of the Gemini 3 model in November, Google has secured a cloud partnership with Apple, leveraging its AI capabilities to drive business growth, while Amazon faces competitive disadvantages due to its lack of in-house AI operations.
- Investor Sentiment Fluctuations: Despite Amazon and Microsoft's cloud units also beating expectations, the size of their beats failed to impress investors, leading to post-earnings selloffs, with DA Davidson downgrading Amazon to 'Neutral'.
- Increased Capital Expenditures: Google plans to double its capital expenditures this year, marking the largest increase among Big Tech peers, and while its stock has rallied about 65% over the past six months, analysts remain cautious about its future upside potential.
See More
Analysis of Investment Opportunities in Artificial Intelligence
- Hardware Companies Surge: Companies like Nvidia, Broadcom, and Taiwan Semiconductor are profiting from AI demand, with Nvidia's GPUs being the preferred choice for AI workloads; AI spending is projected to reach $3 trillion to $4 trillion by 2030, indicating significant market potential.
- Cloud Computing Market Expansion: Major cloud providers such as Amazon, Google, and Microsoft are heavily investing in data centers to meet the demand for computing power from AI developers, with Microsoft Azure achieving a growth rate of 39% in Q2 FY 2026, showcasing its competitive edge in the market.
- Recurring Revenue Stream: The rental model of cloud computing provides these companies with a continuous revenue stream; while they need to regularly replace computing units, the initial investment in infrastructure is already covered, leading to a substantial increase in future profitability.
- Intensifying Market Competition: As AI hardware and cloud computing rapidly evolve, competition among related companies will intensify, prompting investors to monitor these firms' performance in technological innovation and market share.
See More
AI Computing Hardware Demand Expected to Surge Through 2030
- Market Demand Growth: AI computing hardware demand is expected to surge through 2030, with cloud computing companies being key drivers, indicating that AI remains a leading investment theme attracting significant capital inflows.
- Hardware Investment Opportunities: Companies like Nvidia, Broadcom, and Taiwan Semiconductor are excelling in the AI hardware space, with Nvidia's GPUs widely used for AI workloads, known for their high performance despite higher costs, while Broadcom's ASIC designs offer more cost-effective solutions, with AI semiconductor revenue expected to double by Q1 2026.
- Cloud Computing Infrastructure: Amazon, Google, and Microsoft are the major cloud providers, with Microsoft Azure achieving a 39% growth rate in Q2 FY 2026; although AWS is growing slower, all three are actively investing in data centers to meet rising demand, ensuring a continuous revenue stream.
- Long-Term Investment Potential: With AI spending projected to reach $3 trillion to $4 trillion by 2030, the combination of cloud computing and AI hardware presents enormous long-term return potential for investors, especially as infrastructure builds out, significantly enhancing profitability.
See More
Czech Government Considers Social Media Ban for Children Under 15
- Government Support: Czech Prime Minister Andrej Babis expressed support for restricting social media access for children under 15, citing expert warnings about the detrimental effects on mental health and development, highlighting the government's commitment to child protection.
- Legislative Proposal Potential: Deputy Prime Minister Karel Havlicek indicated that the government is seriously considering legislative action, with a proposal potentially introduced this year if the cabinet agrees, signaling a significant policy shift regarding children's social media use in the Czech Republic.
- European Trend: The discussions in the Czech Republic align with trends in other European countries, as Spain, Greece, Britain, and France also explore stricter rules on teenage social media use, reflecting a reassessment of the impact of digital platforms on children's well-being.
- Tech Giants Push Back: Following Australia's precedent of banning social media access for users under 16, tech giants like Elon Musk's X complied swiftly, indicating strong industry pushback against youth social media bans and the challenges of implementing such regulations.
See More
Alphabet's Strong Earnings Report: A Buy Opportunity for Investors
- Core Business Resilience: Despite last year's narrative that generative AI would replace Google Search, Alphabet's revenue grew by 17% year-over-year in Q4 2025, demonstrating the enduring strength of its core business and affirming Google's essential role in the market.
- Cloud Computing Surge: Google Cloud's revenue skyrocketed by 48% year-over-year in Q4 2025, significantly outpacing Microsoft's Azure at 39%, which not only underscores its leadership in the cloud sector but also highlights the competitive edge of its AI tools, positioning it as a top cloud platform in the market.
- Investment Potential: Alphabet's $900 million stake in SpaceX from 2015 has appreciated significantly, with SpaceX rumored to target an IPO valuation of $1.5 trillion, presenting Alphabet with substantial profit potential, while its Waymo autonomous driving division is also rapidly expanding and could become a profitable standalone entity.
- Optimal Buying Opportunity: Given Alphabet's robust financial performance and diversified investment portfolio, now may be an excellent time for investors to increase their holdings in its stock, especially amidst market fluctuations where Alphabet's fundamentals remain strong.
See More
