According to Wedbush, Alphabet stock could experience a significant surge due to Google's strong position as a leader in artificial intelligence (AI). The analysts highlighted several advantages that the Google parent company has over its competitors in the AI field. The stock could potentially rise even further if Alphabet expands its partnerships and provides more guidance on AI projects. Wedbush recently included Alphabet stock in its "Best Ideas List" and raised its price target from $160 to $175 per share, indicating a potential 15% increase from the current stock price of around $152 per share. The analysts believe that concerns about structural risks to Google Search are exaggerated and view Alphabet as benefiting from generative AI. They pointed to Alphabet's extensive data resources for training AI models, as well as its large user base across various products like Android, Search, and YouTube.

Additionally, the company might collaborate with Apple to integrate its Gemini AI into iPhones. While Alphabet stock has lagged behind the gains of other tech giants like Amazon and Microsoft, sentiment around Alphabet's AI ventures has improved in recent months. The stock is still up over 6% since the beginning of the year, indicating resilience despite the controversy surrounding historically inaccurate images created by Gemini. Wedbush expects more positive developments in the future, including Alphabet providing further guidance on its business model for Search Generative Experience, optimizing costs for AI projects, and establishing additional partnerships for AI model development. The analysts consider Alphabet a strong player in the digital advertising industry, with a wide market share and exposure to overall media spending. Wedbush has been bullish on Alphabet and the broader AI-driven rally for some time, predicting a potential 33% increase in tech stocks by 2024 due to AI's influence.