May 22 - Morgan Stanley urged investors to buy Alphabet (GOOGL, Financial) shares after Google I/O showcased new AI tools. At the conference, CEO Sundar Pichai rolled out AI Mode, a conversational interface for Search now live for U.S. users, and previewed Deep Search, which will deliver fully cited reports with visuals in sports and finance. He also highlighted agentic features that can book tickets or fill out forms, plus a “Search Live” camera function.
Analyst Brian Nowak from Morgan Stanley said I/O demonstrated how Google plans to leverage its vast user base to drive personalized search and “agentic experiences.” He pointed to early demand for the Blackwell AI chips and expects tighter integration with apps like Gmail to boost engagement.
Nowak kept an Overweight rating and $185 price target on the stock, implying roughly 10% upside. He noted that while some GenAI features may sit behind paywalls, offering compelling free-tier tools will be key to driving mass adoption over the long term.
Is GOOGL Stock a Buy Now?
Based on the one year price targets offered by 48 analysts, the average target price for Alphabet Inc is $200.33 with a high estimate of $240.00 and a low estimate of $160.00. The average target implies a upside of +18.85% from the current price of $168.56.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc in one year is $195.77, suggesting a upside of +16.14% from the current price of $168.56.
