TD Cowen lifts Alphabet target to $350 on AI-driven search growth

TD Cowen raised its target on Alphabet to $350, with analyst John Blackledge saying the new number reflects what he sees in the company’s artificial intelligence rollout, according to CNBC.

John kept his buy rating on the Google parent and said the stronger call comes after the stock already climbed 65% this year. He wrote that the new level suggests another 12% upside from Thursday’s close. He pointed at Google Search and the fast pickup in Gemini use as the main drivers.

John said he lifted the target after Google rolled out artificial intelligence overviews inside Search. He now expects Google Search to grow at a 10.2% compound annual growth rate for the next five years. His earlier estimate was 9.6%.

He tied the increase to heavier traffic inside Search as more users turn on AI Mode and rely on AI overviews when they type in a query. He also raised his Gemini monthly average users forecast for the end of 2025. His new estimate sits at 850 million, up from 600 million. He said Gemini could reach three billion monthly average users by 2030.

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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