Google Parent Alphabet’s Stock Climbs as Analysts Raise Targets on AI-Driven Growth

2 months ago 12

Andrew Kessel

Fri, Apr 25, 2025, 7:42 AM 2 min read

Google genitor Alphabet's shares roseate Friday pursuing first-quarter results that bushed Street expectations.
Several analysts raised their terms targets for the stock, citing the maturation of tools similar AI Overviews.
Google besides "has information and organisation advantages” against generative AI rivals similar OpenAI, Bank of America analysts said.

Shares of Google genitor Alphabet (GOOGL) climbed Friday arsenic respective analysts raised their terms targets for the banal aft the tech elephantine delivered better-than-expected quarterly results and touted the aboriginal occurrence of AI features.

Alphabet's Class A shares were up adjacent to 3% adjacent $164 successful caller trading, propelling it into the ranks of the best-performing stocks connected the S&P 500 Friday. (Read Investopedia's live sum of today's marketplace enactment here.)

Citi analysts raised their terms people to $200 from $195, pointing to increasing usage and monetization of AI features successful Search, including AI Overviews, which Google said has reached 1.5 cardinal monthly users astir a twelvemonth aft launch. “We judge Google’s GenAI hunt tools are gaining traction,” Citi said.

Bank of America, which likewise raised its terms people to $200, said Google besides “has information and organisation advantages” against rivals similar ChatGPT developer OpenAI successful presumption of driving AI usage growth.

Wedbush boosted its people to $200 arsenic well, calling retired Google’s maturation imaginable “as investors summation much comfortableness related to the existent macro environment, regulatory risk, and the interaction of generative AI connected Google Search.”

Meanwhile, Jefferies analysts reiterated a terms people of $200, portion JPMorgan maintained a people of $195.

CFO Anat Ashkenazi said during the company’s net telephone Thursday that Alphabet inactive plans to walk $75 cardinal successful superior expenditures this year, astir of which is expected to spell toward gathering retired the company's AI infrastructure. The investments “should assistance america person a much resilient organization, irrespective of macroeconomic conditions," Ashkenazi said.

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