Tue Sep 02 12:00:00 UTC 2025: ## Google’s AI Efforts Gain Traction, But Bernstein Remains Cautious

**MOUNTAIN VIEW, CA -** Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, continues to be a key player in the AI landscape, but Bernstein analysts maintain a “Market Perform” rating on the stock with a $210 price target, citing the need for continued growth in key areas.

The firm’s assessment, reiterated on August 26th, acknowledges Google’s strong Q2 performance, with revenues growing 14% year-over-year. Search, YouTube, Cloud, and SP&D (other bets) all witnessed accelerating growth. Google’s AI initiatives are also gaining momentum, with AI Overviews reportedly being used by over 2 billion people.

However, Bernstein emphasizes the importance of sustained growth in Search and paid clicks for the stock to perform well. While they commend Google’s aggressive strategy, the firm remains cautiously optimistic.

“YouTube (+13%), Cloud (+32%), and SP&D (+20%) all beat and contributed to solid top-line performance,” Bernstein stated. “However, in comparison to peers that reported exceptional beats, Google’s 2Q earnings looked more in line.” The analysts highlighted the increased pressure on Google to deliver on both Search revenue growth and paid clicks, especially after sharing paid click growth during the earnings call.

The upcoming verdict in the Search remedy case is also viewed as a potential short-term risk, though ultimately considered a “cleaning event” by Bernstein once the dust settles.

Despite these factors, Bernstein remains cautiously optimistic about Google’s future. “So while we’re increasingly more constructive on Google, and really like this more aggressive version of the company, we’re practicing patience and optimistically watching to see where things shake out. We remain Market-Perform.”

While acknowledging Google’s potential, some analysts suggest exploring other AI stocks that may offer higher upside potential with potentially less risk.

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