BofA Securities Reiterates Buy Rating on Alphabet, Keeps PT

On June 2, BofA Securities analysts reiterated a ‘Buy’ rating and a $200 price target on Alphabet Inc. (NASDAQ:GOOGL). The reiteration follows growing concerns over the potential impact of increasing ties between Samsung and Perplexity AI on internet browsers and AI agents.

BofA Securities Reiterates Buy Rating on Alphabet and $200 Price Target

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Samsung has struck a deal to integrate Perplexity’s artificial intelligence technology across its devices. Alphabet sentiments took a hit following the revelation that Samsung is considering preloading Perplexity’s AI assistant and search app in its upcoming Galaxy devices.

Samsung plans to invest around $500 million in Perplexity AI, potentially becoming one of its largest investors and valuing the startup at approximately $14 billion. The collaboration could also lead to co-developing an AI-native operating system and an AI agent app, improving device-level intelligence.

BofA Securities analysts have downplayed the impact of Samsung integrating Perplexity technology into its device. According to the analysts, Google’s Chrome browser controls about 66% of the market share. In contrast, Samsung Browser’s market share stands at 2.12%. Consequently, the analysts don’t believe the collaboration will impact Google’s search dominance.

Alphabet is a tech giant as the parent company for Google and its numerous subsidiaries. It oversees various businesses, including internet-related products, autonomous driving (Waymo), life sciences research (Verily), and venture capital investments.

While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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