TD Cowen has made a bullish move on Alphabet, raising its target price to $350, reflecting confidence in the company's advancements in artificial intelligence. The material points to an encouraging trend: Analyst John Blackledge has maintained a 'buy' rating, highlighting the stock's impressive performance this year.
Target Price Increase Due to AI Implementation
The increase in target price is attributed to Alphabet's successful implementation of AI features, which has contributed to a remarkable 65% rise in the stock value year-to-date. Blackledge projects an additional 12% upside from Thursday's closing price, fueled by growth in Google Search and the swift adoption of the Gemini AI tool.
Revised Growth Estimates for Google Search
In his revised forecast, Blackledge has raised his growth estimate for Google Search to a compound annual growth rate of 10.2% over the next five years, up from the previous 9.6%. He also anticipates that Gemini's monthly active users will soar to 850 million by the end of 2025, a significant increase from his earlier estimate of 600 million.
Contrasting Market Challenges
This optimistic perspective stands in contrast to the broader challenges faced by AI stocks, which have struggled following disappointing earnings reports from companies like Oracle. Despite these market headwinds, Blackledge's outlook for Alphabet remains strong, underscoring the company's potential in the evolving tech landscape.
In a contrasting development, DeepSnitch AI has gained significant traction in the cryptocurrency market with its presale surpassing $780,000. For more details, see more.
