Bernstein Reiterates Market Perform on Alphabet (GOOGL) Amid AI Competition

Alphabet Inc. (NASDAQ:GOOGL) is one of the Must-Watch AI Stocks for Investors. On August 19, Bernstein SocGen Group analyst Mark Shmulik reiterated a Market Perform rating on the stock with a $185.00 price target.

Drawing parallels between the current artificial intelligence landscape and the mobile platform wars of the early 2010s, the firm noted that they key to dominance is not attracting users, but developers who are convinced to build on your platform.

Apple and Google understood early on that attracting developers will help them win the next big platform. Keeping this in mind, Bernstein wonders what Google will be showcasing to its developers at the annual I/O event to win the artificial intelligence race.

“In the fall of 2010, we attended a meeting with a large global telecom operator. As Apple’s (not covered) iPhone and the App Store began to scale, the telco was busy launching their own app shop, confident in winning smartphones given their hundreds of millions of users – why would developers build anywhere else? By 2013, Android + iOS surpassed a billion users and never looked back. Google and Apple knew that winning over developers meant winning the next platform. What can Google show developers at their annual I/O event to win AI?”

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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