Yahoo Finance·2026-01-14 14:22Core Viewpoint - Alphabet is positioned as a leading AI-centric stock, with significant growth potential and a strong market presence, particularly in the context of its recent performance and strategic partnerships [1][2][3]. Group 1: Market Performance - Alphabet's shares have increased by 7.7% this year, with a market capitalization exceeding $4 trillion, making it the top performer among the "Magnificent Seven" in 2026 [1]. - Comparatively, Nvidia's shares have seen a slight decline this year, highlighting Alphabet's strong market position [1]. Group 2: Strategic Partnerships and Innovations - Alphabet has secured a major deal with Apple, where its Gemini models and cloud technology will support Apple's next-generation AI initiatives [3]. - The Gemini 3 model is recognized as a leader in AI performance, having surpassed ChatGPT [3]. Group 3: Financial Outlook and Analyst Sentiment - Concerns regarding the profitability of Alphabet's search business in the AI era have diminished, with positive developments in AI summaries and continued strength from YouTube [4]. - Analysts, including Bank of America’s Justin Post, express optimism about Alphabet's differentiated AI assets and potential for increased traffic monetization through AI query results [5][6]. - Post maintains a Buy rating on Alphabet with a price target of $370, indicating a potential upside of about 10% from current levels [7]. Group 4: Earnings Projections - Despite Alphabet's strong business momentum, the average earnings per share (EPS) estimates for 2026 have seen minimal increases over the past 60 days [8]. - In the last 30 days, 11 Wall Street analysts have raised their EPS projections for Alphabet, but the adjustments have been modest [8].