Analyst Confidence Grows in Alphabet’s (GOOGL) AI Strategy and Search Business

Core Viewpoint - Alphabet Inc. (NASDAQ:GOOGL) is recognized as one of the top-performing AI stocks heading into 2026, with positive analyst ratings and price targets indicating strong investor confidence [1][2]. Group 1: Analyst Ratings and Price Targets - Citi has reiterated its Buy rating on Alphabet Inc. with a price target of $343 [1]. - Loop Capital upgraded its rating from Hold to Buy and raised the price target from $260 to $320, indicating a shift in sentiment regarding AI's impact on Alphabet's search business [1]. Group 2: AI Strategy and Search Business - Concerns about AI disrupting Alphabet's search revenue growth have diminished, with analysts noting that the search business remains robust, supported by AI features [2]. - Traffic to Gemini, Alphabet's AI product, has doubled compared to the previous year, showcasing the effectiveness of its AI strategy [2]. Group 3: Google Cloud and AI Chips - Loop Capital highlighted the growing recognition of Google Cloud's positioning and the commercial potential of Alphabet's proprietary AI chips (TPUs) [3]. - The opportunity for Alphabet's AI processors is becoming increasingly appreciated in the market [3]. Group 4: Investor Sentiment - Mizuho reported strong optimism regarding Alphabet, stating that the company has "already won the AI game," based on feedback from portfolio managers [3]. - Investors are confident in Alphabet's capabilities and technology to lead in AI development moving forward [3].