TECH - Google Advances AI Integration While Apple May Partner with OpenAI to Enhance Siri Analysts Say | Benzinga
BMO Capital analyst Brian Pitz reiterated Google parent Alphabet (NASDAQ:GOOGL) with an Outperform and a $215 price target.
The analyst said Google I/O contextualized how Alphabet will integrate and monetize over twenty years of AI initiatives and pursue the first big search transformation in as many years with Project Astra.
Pitz noted, specifically, the monetization of AI Overview improving ROAS, the cost to serve declining 80%, and Gemini integrating at the OS level across smartphones.
Bears likely argued that recent OpenAI multimodal Agent demos are more advanced, but he argued that GOOGL leverages significant scale advantages and ecosystem integration over time.
JMP Securities analyst Andrew Boone reaffirmed Alphabet with a Market Outperform and a $200 price target.
With Google’s AI models able to better understand queries, respond to complex searches, and curate information for users, Boone noted Google can unlock more queries with AI-powered search. The analyst flagged that AI is significantly improving Google’s entire product suite as each of its six products with over 2 billion MAU has integrated AI features.
While he acknowledged the risk of search changing as it goes from a web crawler-based service to an AI model-powered service, which could increase competition ...