Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Trending AI Stocks on News and Ratings. On July 2, Truist Securities analyst Youssef Squali reiterated a Buy rating on the stock with a $200.00 price target. The firm is optimistic about Alphabet’s upcoming quarterly results as well as its long-term prospects in artificial intelligence.
Squali anticipates continued growth across Alphabet’s business units, which include search. This is despite investor concerns over Alphabet’s search future as new artificial intelligence tools like Perplexity AI and OpenAI’s ChatGPT have taken up web traffic that used to go through traditional search engines.
Squali expects year-over-year search revenue growth of 8% for the second quarter, which is down from 10% growth in the previous quarter. However, this isn’t a significant downfall.
“We believe Google’s Search remains one of the most important customer acquisition and growth channels for most advertisers.”
A similar growth deceleration is anticipated for Alphabet’s YouTube advertising and cloud services segments, which isn’t something to be extremely worried about.
The real cause of concern is whether Google can sustain its dominance in search. Squali quoted a May report from enterprise SEO company BrightEdge, stating that Google still accounts for more than 90% of the internet search market. Moreover, Google’s own AI tool Gemini, is growing strong, which should help the company as AI search expands.
“AI Search remains Google’s war to lose.”
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and 10 Buzzing AI Stocks on Wall Street Right Now. Disclosure: None.
