Analysts: Alphabet shares expected to rise 15% thanks to AI

Analysts at Wedbush believe that Alphabet stock is poised for a big jump, as it will emerge as the biggest winner in the artificial intelligence race sweeping Wall Street.

According to CNBC, the company raised the target price for shares of the company that owns Google from $160 to $175. This represents an increase of about 15% from current levels.

The company said in a memo on March 22: We believe that the perceived structural risks of the Google search tool are exaggerated. We also still consider Alphabet a net beneficiary of generative artificial intelligence.

Wedbush added: The new target price is largely due to Alphabet’s multi-faceted superiority over other competitors in the AI race, such as its extensive available data for training AI models as well as its huge user base across its products such as Android, YouTube and the search engine.

The company may soon cooperate with Apple by integrating its Gemini artificial intelligence tool into iPhone devices.

Alphabet’s name lags behind major competitors such as Amazon and Microsoft, whose shares have risen by about 18% and 14%, respectively, since the beginning of this year. While the shares that own Google rose by about 6%.

However, analysts confirmed that sentiment regarding Alphabet’s AI endeavors has improved. They also stressed that the stock may witness some bullish incentives in the future, amid hopes that the company will issue more directives about its business model, in addition to more partnerships with other companies to develop artificial intelligence tools.