A Wall Street analyst is projecting upside potential for Alphabet (NASDAQ: GOOGL) stock, citing the company’s advancements in artificial intelligence.

Specifically, Citizens analyst Andrew Boone reaffirmed a ‘Market Outperform’ rating on Alphabet while maintaining a price target of $290, representing a potential upside of about 15% from the current level of around $247. 

In the outlook, Boone praised Alphabet’s progress in integrating AI across its ecosystem but noted that competitive pressure is mounting due to OpenAI’s rapid product rollout. 

Citizens emphasized that Google needs to accelerate its AI deployment to keep pace with ChatGPT’s advancements.

While the overall sentiment remains constructive, with recognition of Alphabet’s AI leadership, risks are tied to ChatGPT’s expanding partnerships with third parties such as Nvidia and AMD. 

Boone cautioned that such integration could reshape digital marketplaces by giving ChatGPT greater influence over user experience and content curation, potentially pressuring areas such as retail media.

Wall Street cautious on Google stock

Meanwhile, the broader Wall Street outlook on Alphabet remains cautious. In this case, based on 37 analyst ratings compiled by TipRanks, the average 12-month price target stands at $247.06, slightly below the latest trading price and implying a modest decline of 0.42%. 

Despite the pessimistic outlook, the consensus analyst rating stands at a ‘Strong Buy’. 

Forecasts range widely, with the most bullish estimate at $300 and the most bearish at $187.

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