Alphabet’s latest artificial intelligence offering has analysts on Wall Street standing by their optimistic view of the stock. The company unveiled a suite of AI-powered tools at its Google IO developer conference on Tuesday that are available via $249.99 per month subscription called “Google AI Ultra .” The service includes higher usage limits, which will allow users to access the full capability of Google’s large language model Gemini, as well as new initiatives like its AI film making tool Flow and 30 terabytes of storage. The plan also includes a YouTube Premium subscription. The rollout comes as Alphabet is racing to further monetize AI products and services. Head of product incubator Google Labs and the Gemini app Josh Woodward labeled the suite as the “VIP pass for Google AI.” GOOGL 1D mountain Alphabet stock on Wednesday. Here’s what analysts on Wall Street are saying on the heels of the Google IO event. Shares were marginally higher in premarket trading on Wednesday. Evercore ISI, outperform rating, $205 per share price target Analyst Mark Mahaney’s price target calls for more than 25% upside from Tuesday’s $163.98 close. “We don’t believe there will be only one AI winner, but we think Google has successfully proven that it will remain a leader in the AI race. Our two biggest takeaways from this I/O are: 1) Google continues to show a high level of innovation across all fronts; and 2) AI Overviews boosting ‘overview-type’ search queries by roughly 10% in the U.S. and India suggests to us that instead of disrupting Google Search, AI may actually accelerate it,” the analyst said. Morgan Stanley, overweight rating, $185 per share price target Analyst Brian Nowak’s price target implies nearly 13% upside for Alphabet stock. “We believe the value of scaled first party data and distribution is higher than ever … and GOOGL I/O showcased how the company intends to leverage its leading user bases and distribution to drive next generation more personalized ‘search,’ and agentic experiences,” Nowak said. “With time, we see these offerings leading to incremental sources of consumer utility, commercial query volume and monetization for GOOGL.” Bank of America, buy rating, $200 per share price target Analyst Justin Post posited that Google’s race to catch its peers in the large language model race may be ending for the firm. His $200 per share price target calls for about 22% upside. “Given [third-party] benchmarks, and slowing LLM innovation, we think the catch-up phase for Google’s LLM capabilities is coming to an end,” the analyst said. Citizens, market perform rating, no price target Analyst Andrew Boone said that Google’s latest AI push doesn’t provide enough of a tailwind to offset potential concerns from its antitrust troubles as well as declining search queries. “While we come away from I/O believing search is able to increasingly cover more queries and tasks, the monetization required of Google’s distribution contracts (including Apple’s) and from public investors leads us to believe Google will continue to offer an inferior search product to ChatGPT’s as we worry that Google search revenue faces headwinds over the next few years,” the analyst said. Citi, buy rating, $200 per share price target Citi analyst Ronald Josey said that Google’s I/O can separate itself from rising competition by defining itself by personalizing user experiences. “With AI Mode going live in the U.S., the Gemini App reaching 400M MAUs [monthly active users] (vs. ~350M in March), and AI Overviews delivering query growth, we believe GOOGL’s product cadence and user adoption of newer tools is ramping which should provide some stability for Search growth,” the analyst said. “The core underlying theme of I/O, in our view, was the focus on creating a more personalized user experience as Google builds out the Agentic experience on Mariner, Astra, and Gemini App products and launches its version of AI glasses.” Goldman Sachs, buy rating, $220 per share price target Goldman’s forecast implies roughly 34% upside for Alphabet stock. “We came away from the keynote presentation increasingly constructive on Alphabet’s long-term strategic positioning across many end-markets (both consumer & enterprise-facing; search & non-search) and continue to see the company as the leading collection of AI/machine learning-driven businesses in our coverage universe,” analyst Eric Sheridan said.
