Alphabet's (GOOGL) AI Strategy Drives Growth - But Analysts Still See Breakup Potential

Alphabet Inc. (NASDAQ:GOOGL) is one of the Trending AI Stocks on Wall Street.  On July 24, DA Davidson analyst Gil Luria raised the price target on the stock to $180 from $160 and kept a “Neutral” rating on the shares.

According to the analysts, Alphabet’s Q2 earnings were better than expected, with an acceleration in revenue across the board. The firm highlighted how Alphabet’s management is continuously highlighting the positive impact of their “full-stack AI approach.” This approach is helping in adoption across the company’s various business lines.

The company’s Search business has witnessed double-digit growth, reflecting on the strong quarter that it has had. Google Cloud has also been accelerating, which has further contributed to the positive results.

However, the firm continues to believe that breaking up the business would allow investors to own the components that they desire. It would also help them unlock additional shareholder value currently not reflected in the entity that is currently combined.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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