Wedbush analysts added Alphabet (NASDAQ:GOOGL) stock to the ‘Best Ideas List’ and raised the target price on the stock to $175 from $160.
The analysts believe that the concerns about structural risks to Google Search are “overstated” and maintain that GOOGL stands to gain significantly from generative AI.
They also highlighted Alphabet's unique competitive edge, which includes unparalleled access to vast datasets for AI model training across text, images, and video.
Extensive user engagement across platforms like Google Search, YouTube, and Android, advanced AI optimized computing infrastructure powered by custom silicon (TPUs), top-tier engineering talent, and a history of successful monetization strategies further bolster its position, the analysts said.
“We continue to view Alphabet as a secular winner within the digital advertising industry with broad exposure and durable market share of overall media spending,” they wrote.