There is no denying that Alphabet (GOOGL) remains one of the most popular and well-known companies in the world, but could its stock still be undervalued? Although there is plenty of interest, the Google parent company could be looking to make waves with an AI expansion business that has $100 billion potential.
Experts are eyeing what could be a massive upside in connection with an Nvidia-like business for the company. Moreover, a recent report has noted that the development of TPU and DeepMind could end up being the most valuable aspect of the company throughout the next year.
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Alphabet Has $700 Billion Business Being Overlooked: What it Means for GOOGL Stock
Over the last year, artificial intelligence has continued to be a focus for technology investors. Indeed, it has maneuvered to the forefront of nearly every company’s operations. Moreover, the development of the technology has never been more important.
Just last week, US President Donald Trump said the United States would become the ‘World Capital’ in both AI and crypto. Therefore, the ongigon arms race has never been more critical. Yet, involvement in the area could be monumental for various companies. Among them is Alphabet (GOOGL), which may be undervalued when considering one AI expansion that has $100 billion potential.
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D.A. Davidson analyst Gil Luria discussed the Google AI components in a recent report. “Is TPU [and] DeepMind Google’s most valuable business?” the expert asked. TPU is the company’s matrix processor chips, specializing in “neural network workloads. In no uncertain terms, these are necessary for the performance of an AI computer to be optimized.
It is no secret in the tech world. Amazon, Microsoft, and Alphabet all sport their own TPUs. However, the value of its TPU and Deepmind products would be monumental if not connected to the Google brand, Luria stated.
“We believe the current value of a potential stand-alone TPU/DeepMind business may be over $700 billion, or as much as $60/share,” they wrote. That is monumental, and its development could be huge for the stock. As the AI arms race unfolds, Alphabet has emerged as a key player looking to dominate the space.
