Alphabet (GOOG) is drawing fresh optimism from Wall Street as analysts point to the resilience of its core search business and expanding artificial intelligence ecosystem. Evercore ISI and Tigress Financial have both raised their price targets, suggesting the stock could climb more than 40% from current levels.
Search strength defies AI disruption fears
Evercore ISI analyst Mark Mahaney noted that Google's position as the leading search engine has actually strengthened over the past four quarters, after hitting a low point in 2024 and early 2025. The firm's proprietary survey found that 78% of respondents still use Google as their primary search engine, underscoring its continued scale despite competition from AI-powered services like ChatGPT.
While OpenAI's ChatGPT remains a "clear long-term share gainer," its share has plateaued since May 2025, with only 10% of respondents naming it their main search tool. Mahaney raised his price target on Alphabet to $450 from $420, implying over 30% upside from Thursday's close.
AI drives more search activity
The survey also challenges the notion that AI could cannibalize Google's traditional search business. Mahaney reported that 60% of respondents said they search more since adopting AI, compared with just 8% who search less. Google's integration of AI across search has led to "material new growth" in overall query volumes, he said.
AI is also helping advertisers identify higher-converting leads, potentially boosting the commercial value of search traffic. Google remains the "first stop" for users seeking flights, hotels, services, and vacation ideas, and it leads across all age groups surveyed.
Gemini narrows gap with ChatGPT
Google's AI assistant Gemini is also closing the gap with ChatGPT. Mahaney noted that the difference in user preference has fallen to just three percentage points—a "record low" for the survey, compared with an 11-point gap in August 2024. This improvement, combined with search resilience, has increased conviction in Google's growth outlook.
Tigress Financial sees 41% upside
Separately, Tigress Financial Partners raised its price target on Alphabet to $485 from $415, maintaining a Strong Buy rating. The firm highlighted AI-driven growth across Search, Cloud, and YouTube, as well as new monetization avenues from Gemini and custom AI chips. Alphabet's reported P/E ratio stands at 17.38, with a PEG ratio of 0.15, suggesting attractive growth relative to valuation.
Tigress acknowledged that Alphabet's AI investment cycle could temporarily weigh on returns on capital, but argued the spending positions the company for faster economic profit growth. The stock is flat over the last month and up about 9% this year.
Beyond search: new growth channels
Analysts are also watching Alphabet's broader AI ecosystem for additional catalysts. Mahaney identified the Gemini app, sales of custom chips to external customers, and Waymo's autonomous-vehicle business as emerging opportunities. The next Gemini model release could be a catalyst if it outperforms rivals from OpenAI and Anthropic.
Tigress similarly highlighted Gemini, Tensor Processing Units, and AI services as potential new revenue streams. The firm believes Alphabet's scale and profitability provide a foundation for continued AI investment while maintaining shareholder returns.
For context, the broader AI landscape remains dynamic, with SoftBank's AI-driven gains and DeepMind talent concerns shaping sentiment. Meanwhile, Reddit's slide on AI search fears highlights the competitive pressure on other platforms.
Together, these analyst views suggest Google's challenge is not just defending search from new competitors, but converting its massive user base, computing infrastructure, and AI capabilities into additional growth engines.
This article is for informational purposes only and does not constitute financial advice.
