Alphabet Soars: TD Cowen Boosts Target to $350 on AI-Powered Search Surge

Wall Street's getting a fresh dose of AI hype. Analyst firm TD Cowen just jacked up its price target for Alphabet, Google's parent company, to a cool $350. The reason? They see the company's artificial intelligence engines starting to seriously juice its core search business.

The AI Cash Machine Starts Cranking

This isn't about speculative lab projects anymore. The call signals a belief that Alphabet's massive investments in AI are transitioning from a cost center to a genuine growth driver. Think smarter search results, more intuitive ad placements, and tools that keep users glued to Google services—all translating directly to the bottom line.

Search Gets a Brain Transplant

For years, search was a mature, albeit cash-printing, business. Now, AI is rewriting the playbook. It's about understanding intent, not just keywords, and serving up answers before you've finished the question. This evolution doesn't just defend Google's turf; it potentially expands the entire market for what 'search' can be and how much it's worth.

The Street's Vote of Confidence

A $350 target is a bold statement in today's market. It reflects a thesis that Alphabet is successfully navigating the shift from the mobile era to the AI era without missing a beat. For investors, it's a signal that the company's 'moat' might be getting deeper and wider with silicon instead of water.

The move highlights a simple, if cynical, truth in finance: nothing gets a price target lifted faster than a compelling narrative wrapped in three letters—A, and I. The real test, as always, will be whether the revenue numbers follow the hype.

Analyst explains price target lift

John backed up his call with fresh survey work from the United States.

“We are raising GOOG Search estimates on our positive U.S. survey data, which indicates i) ramping Gemini chatbot usage following the launch of Gemini 3, ii) continued increases in Search engagement driven by AI Mode and AI Overviews usage, and iii) an increasing share of ChatGPT users that are also using Gemini,” he wrote. He said Search traffic keeps rising as AI features become part of normal use for everyday queries.

He also talked about Alphabet’s advertising business. “Google is the best-positioned mobile advertising company, in our view, due to its leading mobile advertising revenue position, robust capabilities, and traffic advantage relative to its peers,” he said.

John added that the mix of advertising tools, cloud demand, and the company’s AI-heavy structure supports a forecast of double-digit annual revenue growth and double-digit annual EBITDA growth. He said these numbers reflect what he sees in the firm’s long-term models rather than any short-term reaction.

The price call landed at the same time the wider AI trade struggled. U.S. artificial intelligence stocks traded lower on Friday and extended losses into their third straight session. Oracle fell 6% on Friday. Nvidia dropped almost 5%. Broadcom, which posted strong results on Thursday, slid 10%, and the Nasdaq traded about 2% lower on the day. The weakness followed a rough stretch earlier in the week.

AI stocks fall as other sectors rise

The slide began when Oracle posted revenue that missed analyst expectations late Wednesday. The stock fell 11% on Thursday and pulled down other AI-linked names even as Wall Street pushed toward new highs.

The action pointed to money leaving tech and moving into different parts of the market. While AI names struggled, stocks in financials, health care, and industrials moved higher. Visa, Mastercard, UnitedHealth Group, and GE Aerospace were some of the names that gained ground.

The Nasdaq Composite fell 0.26% on Thursday. The S&P 500 and Dow Jones Industrial Average both closed at fresh records on the same day. The AI weakness pushed the S&P 500 down 0.8% for the week.

The Nasdaq lost almost 2% for the week. The Dow stayed positive with a roughly 1% gain. Smaller companies held up better than large ones. The Russell 2000 ROSE more than 1% this week and reached new all-time and closing highs on Thursday.

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