Alphabet’s recent stock decline presents a “tactical buying opportunity,” according to a Morgan Stanley analyst.
The analyst argues that investors are underestimating the potential of Alphabet’s custom-chip business.
The company is planning to expand its data-center capacity significantly through 2028.
These investments in infrastructure and chip development could yield long-term financial benefits.
The stock’s current weakness is tied to broader market concerns, not the company’s core fundamentals.
The analyst believes the selloff has created a favorable entry point for investors.
Data-center expansion is central to Alphabet’s strategy for growing its cloud and AI services.
Custom chips are expected to reduce costs and improve performance for these operations.
The analyst’s outlook suggests the market is overlooking a key growth driver for the company.
