Rosenblatt Opens Coverage on Alphabet and Amazon With Twin Buys, Anchoring Bull Case in Cloud and AI Monetization

Rosenblatt's simultaneous initiation on Alphabet and Amazon with buy ratings represents a directional call on the most contested question in large-cap technology: whether the multi-hundred-billion-dollar AI infrastructure build cycle produces durable returns on invested capital or merely compresses free cash flow. The firm's thesis rests on cloud — Google Cloud's improving margin trajectory and backlog conversion in Alphabet's case, and AWS's re-acceleration coupled with AI workload attach rates for Amazon. That framing puts Rosenblatt on the constructive side of a market that has intermittently punished hyperscaler capex guidance. Corroborating signals appear elsewhere in the infrastructure chain: EnerSys reported data center orders surging 80% alongside record gross margins and a $150 million grant supporting its lithium facility, evidence that power and energy-storage demand tied to compute buildouts continues to run ahead of supply. Investors should note the asymmetry — initiation notes carry limited near-term catalyst value, but the convergence of sell-side conviction and hard order-book data from second-derivative suppliers strengthens the case that AI demand is transitioning from speculative capex to contracted revenue.