BofA Securities maintains buy rating on Alphabet stock amid Samsung talks

On Monday, BofA Securities analysts reaffirmed a Buy rating and a $200 price target for Alphabet stock (NASDAQ: NASDAQ:GOOGL), which currently trades at $169.07 with a P/E ratio of 18.81. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model. The reiteration follows reports of Samsung (KS:005930)’s potential partnership with Perplexity AI, which could influence Samsung’s integration of AI technology across its devices.

Reports suggest that Samsung is considering preloading Perplexity’s AI assistant and search app on its upcoming Galaxy devices, starting with the Galaxy S26 series expected in early 2026. Additionally, the collaboration might extend to integrating Perplexity’s technology into Samsung’s Bixby assistant and Samsung Internet browser.

Samsung is also reportedly planning a strategic investment of approximately $500 million in Perplexity AI, potentially positioning itself as one of the startup’s largest investors. This investment could value Perplexity AI at around $14 billion. The partnership may further involve co-developing an AI-native operating system and an AI agent app, enhancing device-level intelligence.

Despite the potential impact of these developments, BofA Securities analysts note that Samsung Internet browser’s market share is only 2.12% compared to Chrome’s 66%, which may limit the perceived effect on Google’s search revenue. Alphabet stock fell 1% following the news, while the S&P remained flat.

In other recent news, Tesla (NASDAQ:TSLA) experienced a decline in premarket trading amid concerns over global trade tensions and uncertainties surrounding tariff policies. The tech giant saw a decrease of 2.1% alongside other companies in the "Magnificent Seven," which includes Alphabet, Nvidia (NASDAQ:NVDA), Meta, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). In a related development, Germany is considering a 10% tax on major online platforms like Alphabet’s Google and Meta’s Facebook (NASDAQ:META), potentially escalating trade tensions with the U.S. The proposal by Culture Minister Wolfram Weimer is part of a broader effort to tax digital services, which has not been coordinated with other ministries. Meanwhile, Cantor Fitzgerald maintained a Neutral rating on Alphabet, setting a price target of $171. The firm highlighted Alphabet’s recent product announcements, including AI advancements and new features aimed at enhancing user experience. These developments are part of Alphabet’s strategy to integrate GenAI experiences into its core offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.