Why 1 Google Bull Just Got More Bullish
Key Takeaways
- Oppenheimer raised its price target for Google parent Alphabet’s stock.
- A survey from the analyst found those knowledgeable about Google’s AI Mode say its results are more helpful than asking ChatGPT.
- More respondents than Oppenheimer expected say they click on AI Mode result links.
Oppenheimer analysts raised their price target for Google parent Alphabet (GOOGL) stock after survey data revealed a preference among respondents for the tech giant’s new AI search tools over competitors like ChatGPT.
The broker raised its price target to $220 from $200, making it even more bullish compared to the Visible Alpha analyst consensus of about $196. Alphabet shares were little changed around $175 in recent trading Wednesday, meaning Oppenheimer’s new target implies about 25% upside.
An Oppenheimer survey found that 60% of respondents knowledgeable about Google’s AI Mode say its results are more helpful than asking ChatGPT. What’s more, 75% of those who pay for ChatGPT rated AI Mode as more helpful than the OpenAI chatbot.
AI Mode, which rolled out in the U.S. in May, allows users to converse within Google Search the same way they would with ChatGPT, with updated search links provided after each user input. AI Mode appears as a tab beneath the search bar alongside News, Images, and others. Last year, Google launched AI Overviews, which uses AI to generate an answer that appears at the top of users’ search results.
Additionally, more respondents than Oppenheimer expected say they click on AI Mode result links. Google holds roughly 70% of the search advertising market, the analysts noted, making it by far the U.S. leader. Google Search generated $198.09 billion in revenue last year.
UPDATE—July 9, 2025: This article has been updated to include the Visible Alpha analyst consensus and refreshed share prices.