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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.

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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.

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