Alphabet (NASDAQ:GOOGL) may have trailed OpenAI’s ChatGPT in the early stages of the GenAI race, but it is now moving quickly with its latest initiative. Last week, Google announced what it calls the “next Chrome era,” introducing the most significant upgrade in the browser’s history by embedding Google AI throughout the platform.
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The new tools allow users to tap Gemini in Chrome to handle tasks such as scheduling appointments or ordering groceries, while also comparing and summarizing information across tabs and other Google apps, including Calendar, YouTube, and Maps. Chrome’s address bar, or “omnibox,” can now surface AI-generated results, and users can ask questions directly about webpage content to receive tailored, context-aware answers.
“Simply put,” says Citizens JMP analyst Andrew Boone, who ranks amongst the top 4% of Street stock experts, “this is the first step toward agents beginning to help internet browsers complete actions and find and summarize information at the browser level, enabling AI to bring tasks and information instead of the other way around.”
Although Perplexity’s Comet was the first agentic browser on the market, the 5-star analyst is impressed by the fact Google has rapidly caught up in terms of features. Its existing Chrome user base also makes it difficult for competitors to offer a superior browser experience to drive adoption of their own AI-powered search tools.
“Importantly,” Boone says, “we note this is just after the anti-trust trial concluded, while Google has 69% share of global browser usage, per StatCounter.”
Additionally, Boone makes the case that Google’s integration of its app ecosystem sets it apart. Gemini in Chrome interacts seamlessly with apps like Calendar, YouTube, and Maps. While this differs from AI features in other Google products, such as Gemini in Gmail within Google Workspace, access to the wider ecosystem allows Google’s AI to function as a “more complete digital assistant.”
Gemini in Chrome will initially be available to AI Pro and Ultra subscribers in the U.S. who use English, though Boone anticipates it will expand to all users over time as the costs of agentic-driven processing decrease.
The analyst thinks it is the “commoditization of models” for consumers that underscores the value of Google’s distribution. While ChatGPT is still readily accessible, the similarity in model capabilities reduces the incentive for users to switch search providers.
“To that end,” Boone summed up, “we expect distribution to win here as Google is making it incredibly easy to use its AI capabilities across Chrome, Android, and other Google surfaces.”
With AI representing a “growing tailwind across Google’s multiple businesses,” and the company unlikely to suffer “commercial share loss,” Boone has now raised his GOOGL price target from $250 to $290, suggesting the shares will climb 18% higher in the months ahead. Boone’s rating stays a Market Outperform (i.e., Buy). (To watch Boone’s track record, click here)
Elsewhere on the Street, GOOGL shares claim an additional 28 Buys and 8 Holds, for a Strong Buy consensus rating. However, going by the $243.53 average target, shares will stay range-bound for the foreseeable future. It will be interesting to see whether analysts update their targets or downgrade their ratings shortly. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.