TD Cowen has increased its price target for Alphabet to $350, reflecting the company’s advancements in artificial intelligence, according to analyst John Blackledge. This upgrade follows a 65% stock surge this year and suggests potential for another 12% rise. Key factors include enhanced Google Search capabilities and increased Gemini usage, bolstered by new AI features. Blackledge projects a 10.2% compound annual growth rate for Google Search over the next five years, up from 9.6%. He also revised Gemini’s monthly active users forecast for 2025 to 850 million. Despite weakened performance in the broader AI sector, including declines in stocks like Oracle and Nvidia, Alphabet remains well-positioned in mobile advertising. Strong growth in traffic, AI integration, and robust advertising capabilities are expected to drive double-digit annual revenue and EBITDA growth. As financial and industrial sectors gain, AI stocks have faced volatility, evident in a recent drop of the Nasdaq by nearly 2%.
Source link
