Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com -- BMO Capital Markets has lifted its price target for Alphabet shares to $294 from $225, citing the company’s growing dominance in artificial intelligence across its Search, Cloud, and YouTube platforms.
The firm reiterated its Outperform rating, calling Alphabet a “Top Pick” as AI-driven integration continues to boost growth and monetization.
“GOOGL’s AI leadership continues to translate into strength in core Search and GCP,” BMO said, pointing to ongoing AI integrations and product launches, driving incremental user value.
The bank raised its third- and fourth-quarter gross revenue forecasts by 1.2% and 1.5%, respectively.
BMO noted that Google is “all in on AI integration into Search,” with “AI Mode scaling to 100M+ MAUs in the first 2 months.”
The firm said expert checks suggest Google’s new AI search features are “providing publishers with less organic/SEO traffic, leading publishers to lean further into paid ads to recoup the lost traffic/revenue,” which BMO described as “a foreseeable tailwind for GOOGL and the broader advertising industry.”
The analysts also highlighted momentum in Google Cloud Platform, noting that “GCP remains well-positioned for share gains, supported by AI product integrations and ramping AI-native workloads.”
BMO raised its 3Q25 GCP growth forecast to 38%, from 35% previously.
On YouTube, BMO said that continued investments to support creators should aid robust content generation, adding that new data-sharing tools are supporting improved targeting and driving ROAS higher.
While the firm continues to monitor outcomes of the Ad Tech Remedies trial, BMO maintained that “a structural break-up is unlikely,” and that a “court-enforced settlement would better restrict Google’s conduct rather than a forced divestiture.”