[Click e-Stock] "Capital Increase Is Actually a Buying Opportunity"... The Top Global AI Pick Is Alphabet

Alphabet's 80 billion dollar (approximately 120 trillion won) paid-in capital increase has been evaluated as proof of strong demand for artificial intelligence (AI).

Google holding company Alphabet

On June 3, Kwon Youngbae, a researcher at Mirae Asset Securities, stated, "Alphabet is carrying out investments for world-class infrastructure construction due to unprecedented AI demand as the purpose of its capital increase," adding, "This indicates that there is a very strong demand for AI."

Kwon explained, "Alphabet's capital expenditures for fiscal year 2026 are projected to be between 18 billion and 19 billion dollars, and considering the expected operating cash flow of 20.3 billion dollars, this capital increase is not burdensome." He added, "Capital expenditures for fiscal year 2027 could be significantly revised upward compared to the previous year."

He also suggested Alphabet as the most preferred global AI stock. Kwon maintained a 'buy' investment rating and a target price of 500 dollars for Alphabet, saying, "Considering the full-scale spread and rapid growth of AI, any short-term decline in stock price due to the paid-in capital increase would provide a good buying opportunity."

The sales growth rate of Alphabet's cloud division is at a higher level compared to its competitors. In the first quarter of this year, the cloud division's sales growth rate was 63% year-on-year, far surpassing Microsoft (30%) and Amazon (28%).

This content was produced with the assistance of AI translation services.