As expected, Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) unveiled a slew of AI (Artificial Intelligence) innovations at its annual developer conference, or Google I/O. With advancements in AI likely to power the technology giant’s products and features, and drive future growth, Goldman Sachs analyst Eric Sheridan is bullish about the company. He sees GOOGL “as the leading collection of AI/machine learning-driven businesses” in his coverage universe.
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GOOGL said that it is combining the capabilities of generative AI into its offerings like Search and Cloud, paving the path for a new wave of growth. Its stock closed about 4.1% higher yesterday and is up about 1.21% in the pre-market session on Thursday.
With the popularity of OpenAI’s ChatGPT and AI becoming ready for enterprise use, AI solutions are expected to generate massive growth opportunities. Thus, GOOGL is leaving no stone unturned to remain ahead of the curve.
The company is bringing generative AI capabilities to Search ads. This comes after Microsoft (NASDAQ:MSFT) integrated ChatGPT into Bing, its web search engine, to boost its digital ads business. Furthermore, it introduced new generative AI capabilities for Google Cloud.
While GOOGL is advancing well with its AI-powered solutions, it also introduced a new hardware lineup, including the Pixel Fold, Pixel 7a, and Google Pixel Tablet.
Sheridan sees GOOGL as well-positioned to capitalize on AI opportunities. Despite short-term macro headwinds, the analyst recommends a Buy on GOOGL stock with a price target of $132 (18.12% upside potential from current levels).
What’s the Prediction for GOOGL Stock?
With GOOGL’s rapid advancements in AI, Wall Street maintains a bullish outlook on its shares. GOOGL stock has 29 Buy recommendations for a Strong Buy consensus rating on TipRanks. Analysts’ average price target of $129.50 implies 15.88% upside potential.
Per TipRanks data, the most accurate analyst for GOOGL stock over a one-year time frame is Doug Anmuth of J.P. Morgan. The analyst has had an 82% success rate in his stock ratings, with an average return of 21.97% per trade.
