Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks in the Spotlight Right Now. On July 22, Stifel analyst Mark Kelley raised the price target on the stock to $218.00 (from $200.00) while maintaining a “Buy” rating. The rating affirmation follows positive Search trends, particularly AI Overviews, which continue to monetize at a healthy rate despite weaker clicks.
The firm highlighted that better conversion rates for AI-driven search results are resulting in higher cost-per-click (CPC) metrics for the company’s core search business. It also believes that Alphabet is likely to report positive upside to estimates in its second-quarter results. However, positive market reaction may fade after the earnings.
This is because some ongoing challenges have been making the stock “controversial,” such as scepticism over the AI landscape and several Department of Justice lawsuits that the company is facing.
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Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
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.
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