10 AI Stocks in the Spotlight Today

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 227

Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks in the Spotlight Today. On July 28, JMP Securities reiterated its Market Outperform rating on the stock with a $225.00 price target. The rating affirmation follows Google’s launch of Web Guide, an experiment by Search Labs that leverages AI to intelligently organize the search results page.

According to the firm, Web Guide is likely the next iteration of Google search, following previous experiments like AI Overviews and AI Mode. The firm anticipates it to be an evolution of Google’s efforts to improve the links section in search results.

The firm further noted how Google has been cautious with its adoption of the AI Mode, reflecting on how the company has been balancing search monetization with engagement. This may be because AI Mode likely monetizes at a lower rate in comparison to traditional search.

Moreover, while Google is likely to have strong near-term results driven by its superior commercial search capabilities compared to ChatGPT, there may be some challenges, such as the antitrust trial penalties and improving e-commerce experiences from competitors.

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