Following Google's (GOOGL, Financial) latest AI innovations unveiled at the annual Google I/O developer conference, J.P. Morgan analyst Doug Anmuth reaffirmed an "Overweight" rating with a target price of $195 per share. This reflects confidence in Google's comprehensive AI strategy to maintain its leadership in the field. The new AI Mode in Google's search function will replace traditional search results with direct answers akin to an AI chatbot. This marks a reimagining of search functionalities, linking separate tools with integrations like Astra and Deep Research.
The AI Mode has already begun rolling out to U.S. users, showcasing Google's rapid product iteration. Anmuth highlights Google's exceptional execution and all-encompassing AI approach, comprising world-class research, custom AI chips, robust infrastructure, and extensive developer ecosystems. Additionally, Citi analyst Ronald Josey raised his price target from $180 to $200, suggesting the AI Mode could bolster Google's core search engine business by attracting users back.
Despite challenges such as decreased Google searches via Apple's Safari, partially due to the rise in AI tools like ChatGPT, Google's stock price has shown upward momentum, increasing approximately 6% from $163.98 to $173.83.
