We recently published 10 Stocks to Watch Ahead of Q3 Earnings Season. Alphabet Inc. (NASDAQ:GOOG) is one of the stocks that Wall Street analysts are discussing these days.
Saira Malik, chief investment officer at Nuveen, said in a latest program on CNBC that Alphabet Inc (NASDAQ:GOOG) continues to be a leader in the AI space. She explained why she likes the stock:
“Looking at Alphabet, people are worried about what will the impact of OpenAI be on Google’s advertising business and genesis. I think the impact is not going to be as great as people think and you have the upside from Waymo and their YouTube business.”
Photo by Kai Wenzel on Unsplash Alphabet Inc. (NASDAQ:GOOG) bulls believe concerns around AI-related threats to Google search are overstated. Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. As of April, Google had over 1.5 billion monthly users interacting with its AI-powered Search overviews. Google’s competitor OpenAI failed to impress the market with its GPT-5 model, while Gemini is gaining traction with new features. Analysts believe the company is strongly positioned to start placing ads in AI search results, which means its core ads business will not be impacted despite the decline in traditional search.
Lakehouse Global Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:
“We’ll wrap things up with Alphabet Inc. (NASDAQ:GOOG) , which in similar fashion to Hemnet, only experienced a marginal share price decline over the year. That said, Alphabet did meaningfully underperform our average portfolio return as concerns that it’s near monopolistic position in Search (which generates the majority of their advertising revenue) could be eroded by new Artificial Intelligence (AI) alternatives like ChatGPT and Perplexity. When it comes to the potential risks AI poses to the dominance of search, our view is a balanced one. No doubt uncertainty has increased but we believe Alphabet remains well positioned through its massive user distribution (9 products with over 1 billion users each) and long-standing investments and leadership in AI (DeepMind and Google Brain).