Alphabet Inc. (NASDAQ:GOOGL) is one of the 15 Best American Tech Stocks to Buy Right Now. On September 22, Baird increased its price target on Alphabet Inc. (NASDAQ:GOOGL) from $215 to $275 while keeping an Outperform rating.
Baird highlighted that Google continues to dominate in the search market, even though generative AI platforms are growing.
The research firm’s analysis suggests that Alphabet Inc.’s (NASDAQ:GOOGL) Google controls the majority of commercial search queries. AI search makes up only about 1% of total referral traffic and an “immaterial percentage” of conversions.
Baird pointed out that AI chatbots seem to be growing the total addressable market for search instead of taking customers away from Google’s business. This creates a positive outlook for Alphabet Inc.’s (NASDAQ:GOOGL) Google.
The research firm also noted that Google’s AI Overview (AIO) focuses more on informational queries rather than commercial intent. This can help reduce potential negative impacts on the company’s advertising revenue.
Alphabet Inc. (NASDAQ:GOOGL) is a global technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android.
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.