Analyst Says Alphabet (GOOG) ‘Overhang is Gone’ and Stock is Undervalued

Core Viewpoint - Alphabet Inc. (NASDAQ:GOOG) is considered undervalued following a recent court ruling that it will not have to sell Chrome, alleviating significant concerns regarding its market position [1][2] Group 1: Market Position and Valuation - Analysts believe that the concerns regarding AI-related threats to Google search are overstated, as Google has a competitive edge due to the ease of switching for its users [2] - The stock is viewed as undervalued, with a meaningful overhang removed after the court ruling [1][2] Group 2: Competitive Landscape - OpenAI's GPT-5 model has not impressed the market, while Google's Gemini is gaining traction with new features, positioning the company favorably in the AI search space [3] - Analysts anticipate that Google will begin placing ads in AI search results, which will help maintain its core advertising business despite a decline in traditional search [3] Group 3: AI Potential and Competitive Advantages - Alphabet Inc. is effectively leveraging its AI capabilities, with advantages such as industry-leading models, proprietary chips, and access to high-quality data [4] - The company's distribution ecosystem, consisting of seven different apps with over two billion users each, is enhancing its competitive differentiation in AI [4]