Alphabet Inc. (NASDAQ:GOOGL) has been identified as one of the promising AI stocks to monitor. On October 9, BMO reiterated a rating of âOutperformâ on the stock, raising its share price target from $225 to $294, citing strong performance in Search, Cloud, and YouTube.
âGOOGLâs advancements in AI are translating to improved performance in core Search and GCP [Google Cloud Platform], as observed by experts, making the most of ongoing AI integrations and product launches that add user value.â
The report highlighted that Google is âfully committed to AI integration in Search,â noting that âAI Mode has scaled to over 100 million monthly active users within the first two months.â
Image by Kai Wenzel on Unsplash
It also pointed out that expert observations show Google’s new AI-driven search features are causing a decline in organic and SEO traffic for publishers, prompting them to invest more in paid advertisements to regain lost traffic and revenue; this trend is seen as beneficial for GOOGL and the advertising sector at large.
With regards to growth in Google Cloud Platform, it was stated that âGCP is well-positioned for market share increases, aided by AI product integrations and the growing number of AI-focused workloads.â
Alphabet Inc. (NASDAQ:GOOGL) operates as a major American multinational technology conglomerate, fully owning the renowned internet enterprise Google, along with various other ventures.
While GOOGL presents a compelling investment potential, we believe other AI stocks may offer greater upside with lower downside risk. For those interested in uncovering an extremely undervalued AI stock that could significantly benefit from Trump-era tariffs and the onshoring trend, check out our free report on the top short-term AI stock.
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