Is Alphabet Inc. (GOOGL) The Most Profitable Mega Cap Stock to Buy?

Alphabet Inc. (NASDAQ:GOOGL) is among the most profitable mega cap stocks to buy. On February 9, Doug Anmuth, an analyst at J.P. Morgan, reiterated his Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with a price target of $395. This reaffirmed price target reflects approximately 22% upside from the current price.

Three days earlier, KeyBanc Capital Markets lifted the price target on Alphabet Inc. (NASDAQ:GOOGL) to $370 from $360 and maintained an Overweight rating. In its analysis, the firm highlighted the company’s increased capex to back its growth in Google Services and Google Cloud businesses. Although concerns about the scale of investment exist, the giant demonstrates robust performance across its segments, KeyBanc noted.

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According to the firm, Search expanded in 2025, and Cloud backlog surged nearly 55% QoQ in the fourth quarter, with Gemini, Alphabet’s AI assistant, achieving 750 million monthly active users. Alphabet Inc. (NASDAQ:GOOGL) is what KeyBanc Capital Markets describes as “more of a revisions than multiple expansion story,” noting that the rise in share price would be driven more by earnings growth than by valuation multiple expansion.

Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that provides web-based search, consumer content, enterprise solutions, software engines, and advertising through its subsidiaries. Incorporated in 1998, the company’s segments include Google Services, Google Cloud, and Other Bets.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.