Why Shares in Alphabet Bucked The Trend Today
Shares in (NASDAQ: GOOG) rose by more than 4% in trading before 10 a.m. today in what looks like a kind of "flight to quality" in the AI-related sector. Here's why that could continue.
Understandably, the market might get jittery about the AI/data center investing theme at some point. AI/Data center stocks have been running hot, and there's mounting speculation that a bubble could be forming in the sector.
The gist of the argument is that hyperscalers, like Alphabet, are investing heavily in AI, and their returns on that investment may not quite turn out to be as strong as the market expects. The corollary is that a broad-based slowdown in spending will follow, taking AI-related stocks down with it.
Source Fool.com
Alphabet Inc. A Stock
€263.50
-1.090%
The stock is one of the favorites of our community with 125 Buy predictions and 3 Sell predictions.
As a result the target price of 280 € shows a slightly positive potential of 6.26% compared to the current price of 263.5 € for Alphabet Inc. A.
