PepsiCo (PEP) Upgraded to Buy, $167 Target 11/08/25
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Over 95% of all international data and voice traffic, everything from your video calls to complex financial transactions, travels through vast networks of subsea telecommunications cables. This isn’t just about connecting continents anymore; it’s become a critical component of the artificial intelligence buildout. Major tech players like Meta, the parent company of Facebook and Instagram; Google, the search giant; Amazon, the e-commerce and cloud computing leader; and Microsoft, the software powerhouse, are significantly ramping up their investments in this vital infrastructure. They’re pouring capital into laying new cables and upgrading existing ones to support the immense data demands of their AI initiatives. This surging investment highlights just how foundational these underwater highways are to the future of technology and global communication, making the sector one to watch closely for related infrastructure plays.
They are truly the world’s information superhighways, handling not just typical communications but also critical financial transactions and government data. What’s driving this current boom, beyond just general internet traffic, are the massive AI demands from these same tech giants. Companies such as Google, Amazon, Meta Platforms, and Microsoft are now directly building out this infrastructure. They need these cables to connect their ever-growing network of data centers globally, which are the powerhouses for AI processing. This direct investment signifies a strategic push to control their own data pipelines, ensuring low latency and high bandwidth for their AI models and services. For investors, this underscores a sustained infrastructure push by the biggest names in tech, suggesting opportunities in the companies that build, deploy, and maintain these crucial undersea networks.
German financial institution DZ Bank has upgraded PepsiCo’s stock, giving it a ‘Buy’ rating. Analyst Axel Herlinghaus set a new price target of $167, moving it up from a previous ‘Hold.’ This vote of confidence comes as PepsiCo continues to deliver strong financial results, consistently topping revenue estimates. The upgrade highlights the bank’s optimistic outlook for the company’s future performance. For those focusing on stable, dividend-paying stocks, PepsiCo remains a favorite, even being featured on lists of best DRIP (Dividend Reinvestment Plan) stocks to own. This upgrade suggests that despite its large market capitalization, there’s still perceived upside for the venerable consumer brand.

Keywords: AI buildout, AI demands, AMZN, Buy rating, DRIP stocks, DZ Bank, GOOGL, META, MSFT, PEP, PepsiCo, consumer staples, data centers, data traffic, fiber-optic, global data, internet infrastructure, price target, stock upgrade, subsea cables, tech investment, telecomThe post PepsiCo (PEP) Upgraded to Buy, $167 Target 11/08/25 first appeared on Rapid Money Radio.

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