Alphabet Inc. (NASDAQ:GOOGL) is a Must-Watch AI Stock on Wall Street. On October 27, JPMorgan reiterated the stock as “Overweight” and raised its price target on the stock to $300 per share from $260. The firm believes that Alphabet is the second-best performing “Mag 7” name year-to-date, up 37% and 80% from April lows.
“Google is the 2nd best performing Mag 7 name YTD—up 37% YTD and 80% from the April lows (compared to the SPX +15% and +36%)—and our recent discussions with investors frequently focus on what’s next following the big run.”
A major overhang was removed when the company received a favorable outcome in the DOJ Search Commercial Agreement trial. Google also demonstrates strong financial performance and AI innovation, the firm noted.
JP Morgan also believes that Google is handling the transition to AI search well and is likely to sustain double-digit growth in Search. YouTube ad growth will also possibly accelerate on share gains, the firm noted. Moreover, Google Cloud growth is accelerating in its AI positioning and TPU infrastructure.
The upcoming Gemini 3 launch will further strengthen the Google ecosystem and catalyze shares. Despite intensifying competition with OpenAI, JP Morgan believes that Google has key advantages in data, distribution, and balance sheet strength.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
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.
