At its recent I/O event, Google (GOOGL) made it clear that artificial intelligence will play a major role in its future, and analysts had a lot to say. Firms like Wells Fargo, Morgan Stanley, Bank of America, and Evercore ISI, which are all led by five-star analysts, mostly responded with cautious optimism. They praised the new AI Mode as a smart move, but Wells Fargo’s Ken Gawrelski said that Google still needs to bring AI deeper into its core Search in order to compete with AI-focused rivals. However, Evercore ISI’s Mark Mahaney pointed out that AI Overviews are already increasing search activity by about 10% in big markets like the U.S. and India, which suggests that AI might actually help Search grow rather than hurt it.
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Indeed, Google showed off a wide range of AI features. AI Mode (now live in the U.S.) can handle much longer and more complex questions, thanks to Gemini 2.5. Google also introduced Beam, a new video platform built with HP and Zoom, that turns regular 2D video into 3D in real time and includes live speech translation. Other highlights included a prototype for XR glasses with translation and navigation, Smart Replies in Gmail that use personal data to write better responses, and new AI tools like Veo 3 for generating video and Imagen 4 for creating images, both of which are available in the Gemini app.
Google also revealed Agent Mode, which is an AI that can browse the web and perform tasks on its own. Originally part of a research project called Project Mariner, it is now available to developers through the Gemini API and will soon be added to Search, Chrome, and the Gemini app. Interestingly, Bank of America’s Justin Post said that the rollout of AI across so many products shows that Google is very confident about its future. As a result, analysts believe that Google is setting itself up as a long-term AI leader, although its success will depend on how well it executes.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $197.69 per share implies 16.7% upside potential from current levels.
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