Alphabet’s AI Advancements and Strategic Positioning Justify Buy Rating

Justin Post, an analyst from Bank of America Securities, maintained the Buy rating on Alphabet Class A (GOOGL – Research Report). The associated price target remains the same with $200.00.

Justin Post’s rating is based on Alphabet’s strategic advancements in artificial intelligence, particularly highlighted during the Google I/O event. The company showcased significant progress in integrating AI across its ecosystem, with the introduction of new models like Gemini 2.5 Pro, which now leads in industry benchmarks for reasoning and coding tasks. This integration is expected to enhance Google’s competitive edge in the AI domain, suggesting a positive outlook for the company’s growth.
Furthermore, Google’s transition to full AI Mode in search, which has already shown a substantial increase in query volume in major markets, indicates a strong potential for revenue growth. The company’s efforts to incorporate agentic functionalities and immersive shopping experiences in search further solidify its position against competitors like OpenAI. These developments, along with the potential of Android XR-powered smart glasses, position Alphabet as a leader in next-gen computing platforms, justifying the Buy rating.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $195.00 price target.