Alphabet Inc. (GOOG)'s AI Ad Strategy Expands Reach - But Analyst Keeps Neutral Stance

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against other AI stocks on Wall Street’s radar.

Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On May 23, Citizens JMP analyst Andrew Boone reiterated a “Market Perform” rating on the stock.

Boone has highlighted a shift in Google’s ad strategy that now aligns with its advanced AI search capabilities. Google Marketing Live, Google’s online event brimming with AI, demonstrated the latest advertising products from the company and the integration of AI into its search functions.

According to Boone, AI search is broadening Google’s total addressable market for search by handling more complex queries. This increased ad load is likely to maintain revenue projections for Google’s search business. However, rising competition for search queries could limit Alphabet’s stock valuation. Since the competitive landscape for Alphabet seems competitive and constraining, the firm places a neutral outlook on the shares.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $200 implies a 18.72% upside, however, the Street-high target of $234 implies an upside of 38.9%.

Overall, GOOG ranks 3rd on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.