Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares are trading higher on Monday after multiple analysts raised price targets on the stock.
- GOOG shares are testing new highs. Review the technical setup here.
What Happened: Raymond James analyst Josh Beck reiterated an Outperform rating and raised the price target to $275 from $210. JPMorgan analyst Brent Thill also maintained an Overweight rating while increasing the price target to $300 from $260 on Monday.
The analyst updates follow Anthropic’s announcement of a deal with Google Cloud worth “tens of billions” of dollars expected to bring more than a gigawatt of capacity online next year. Anthropic said it will use a lot more Google technology through the partnership — up to one million tensor processing units — to power its AI work.
This initiative is set to significantly boost Anthropic's compute capacity as it continues to advance its AI research and product development to meet the demands of its fast-growing user base. The company applies a multi-platform strategy, utilizing Google TPUs, Amazon Trainium and Nvidia GPUs.
Google Cloud CEO Thomas Kurian stated, “Anthropic’s choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years. We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs, building on our already mature AI accelerator portfolio, including our seventh-generation TPU, Ironwood.”
Alphabet shares may also be getting a boost on Monday after the company announced that Google Cloud and PayPal Holdings Inc (NASDAQ:PYPL) will be joining forces to create a new agentic commerce solution combining Google’s conversational commerce agent with PayPal-powered payments.
The new offering will allow businesses to quickly add smart shopping features to their websites or apps while keeping full control of customer relationships.
“Once deployed, the merchant's commerce agent can understand complex requests, suggest relevant products, answer questions, and personally assist the user through their shopping journeys,” the company said in a blog post.
GOOG Price Action: Alphabet shares are climbing, up 3.27% at $269.04 at the time of publication on Monday, according to Benzinga Pro. The stock is hitting new 52-week highs on Monday. It’s also sitting about 13% above its 50-day moving average, showing strong momentum.
Read Next:
Image: Below the Sky/Shutterstock.com
