Alphabet Inc. (NASDAQ: GOOGL), a leader in clean energy infrastructure and data centres based in San Francisco CA, announced plans today to acquire Intersect.
In a press release issued by the company, it was revealed that Intersect will be spending $4.75 Billion on securing clean, reliable energy for its data centres.
Google’s shares rose on Monday as a result of the Intersect report. They’re more than 100 percent higher at this time compared to their low in April.
The Intersect Deal and Google Stock
Intersect is a direct answer to one of Alphabet’s biggest needs: securing sustainable, reliable energy for the rapidly growing data centres.
Google will be able to increase its efficiency while decreasing exposure to the volatile energy market by integrating Intersect’s clean power-generation capabilities into its cloud infrastructure.
This acquisition will also enhance its ESG profile, making it more attractive to investors who are increasingly interested in sustainability.
The deal is not just about optics. It also ensures that Alphabet’s cloud and artificial intelligence workloads are powered with the power necessary to allow the company to gain a larger market share for cloud services.
The transaction may boost GOOGL’s long-term growth. This could lead to a rise in GOOGL share prices over time.
Can I still invest in GOOGL?
Intersect specializes in the co-location of data centres and renewable energy sources (solar, wind and batteries), providing an “energy-first” AI infrastructure.
Alphabet wants to close the artificial intelligence gap between itself and its competitors, such as OpenAI. OpenAI has invested more than $1 trillion in data centres and infrastructure.
This deal also strengthens the case for long-term investments in Google, as its shares trade at a relatively low valuation compared to other AI-related technology stocks.
Some investors believe that the company’s stock, which trades at less than 30 times earnings in the future, offers exposure to the artificial intelligence market without the risk of a more crowded trading environment.
Mark Mahaney, the head of Internet Research at Evercore ISI, said in an interview with CNBC that “Google is one name you should stick to” because it provides exposure to three main verticals, AI, quantum computing and legacy technology.
Mahaney’s optimistic view of Alphabet Inc
Mahaney said that Google’s cloud unit is poised for growth of north of 40% in the future.
The robotaxi division of the company, Waymo, is also in its infancy.
Last week, on ” SquawkBox“, he stated that these factors could be enough to drive GOOGL’s stock up in 2026.
The AI Stock is a great investment for the New Year. It has a dividend yield of 0.27% and billions in stock repurchase authorization.
Alphabet Inc. may still be a good investment if you consider the Intersect acquisition, its artificial intelligence exposure and the company’s overall fundamentals.
This article Alphabet buying Intersect – is this a signal to buy GOOGL? This post may change as new information becomes available
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