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On Wednesday, KeyBanc Capital Markets maintained a positive stance on Alphabet Inc. (NASDAQ:GOOGL), reiterating an Overweight stock rating and a price target of $195.00. Currently trading at $163.98, Alphabet appears undervalued according to InvestingPro analysis, with analyst targets ranging from $160 to $240. The endorsement follows the recent Google I/O 2025 event, which the firm believes has refocused investor attention on the foundational elements necessary for AI success. KeyBanc highlighted Alphabet’s strong positioning in engineering, infrastructure, and distribution as key advantages.
The analyst from KeyBanc pointed out the importance of Gemini 2.5, Alphabet’s latest AI offering, which is integrated with Google AI Mode alongside the search function. This strategic move is expected to drive usage and create new opportunities for monetization. With a robust revenue growth of 13.07% and an impressive EBITDA of $135.71 billion, the firm anticipates that by offering a range of AI products, from free to paid models, Google is well-equipped to cater to both individual consumers and professional users.
KeyBanc’s analysis suggests that Alphabet’s approach could address concerns about the potential plateauing of search revenue. The firm remains confident in Alphabet’s prospects, maintaining its Overweight rating and $195 price target, which is based on a 19x multiple of the company’s projected 2026 earnings.
The Google I/O event has traditionally been a platform for the tech giant to showcase its latest advancements and product updates. With AI being a critical focus area for the company, the event’s revelations are closely watched by investors and industry observers alike.
Alphabet’s efforts to integrate AI into its core products and services reflect the company’s commitment to innovation and its strategy to stay ahead in the competitive tech landscape. The positive assessment from KeyBanc underscores the potential for Alphabet’s continued growth and leadership in the AI domain. InvestingPro data reveals the company’s strong financial health with a "GREAT" overall score, maintaining more cash than debt and demonstrating solid profitability metrics. For deeper insights into Alphabet’s financial health and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Alphabet Inc. has been in the spotlight with several notable developments. BMO Capital Markets has maintained its Outperform rating for Alphabet, setting a $200 price target based on a survey indicating strong consumer loyalty to Google Search despite competition from AI-driven search tools. Meanwhile, JMP Securities has retained its Market Perform rating, citing concerns over the U.S. search antitrust trial and loss of search query share as potential challenges for Alphabet’s revenue. The tech giant showcased AI advancements at its Google I/O conference, highlighting innovations like real-time translation and media creation tools. These AI-driven features aim to enhance digital user experiences by reducing online friction and personalizing interactions. Additionally, Alphabet launched the NotebookLM mobile app for Android and iOS, allowing users to access complex information on the go. In another development, Uber (NYSE:UBER) has partnered with Waymo, an Alphabet subsidiary, to offer early access to autonomous vehicle rides in Atlanta, marking a significant step in transportation innovation. These recent developments underscore Alphabet’s strategic focus on AI and autonomous technology as it navigates competitive and regulatory landscapes.
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