Shares of Alphabet, the parent company of Google, gained over 1% on Wednesday as TD Cowen maintained a bullish call on the tech giant.
TD Cowen has maintained its Buy rating and $195.00 price target on Alphabet Inc., expressing confidence in the company’s performance ahead of its second-quarter 2025 earnings report, which is scheduled for release in 20 days.
The firm anticipates robust growth in Alphabet’s core digital advertising segments, particularly in Search and YouTube, despite uncertainties related to global trade and tariffs.
The target price indicates an 11% upside from Tuesday’s closing price.
According to TD Cowen, Alphabet is expected to post 12.7% year-over-year net revenue growth in Q2, 5.4% above the current consensus estimate.
The firm also projects that Alphabet’s operating income and earnings per share (EPS) will exceed consensus by 5.5% and 4.6%, respectively.
These projections are backed by a digital advertising expert call hosted by TD Cowen on July 2, which indicated continued strength in Google Search performance into the summer months.
Consumer behavior has remained resilient, further supporting optimism around Alphabet’s advertising business, which remains a primary revenue driver.
Generative AI and strategic developments in focus
In addition to expected financial outperformance, investors are paying close attention to Alphabet’s ongoing investments in artificial intelligence (AI).
Of particular interest is the company’s AI Mode rollout, a new feature that integrates traditional keyword-based search with conversational, chatbot-style responses.
This marks Alphabet’s latest effort to enhance its core search product amid intensifying competition in the generative AI space.
Alphabet is increasingly weaving AI capabilities into its existing platforms, aiming to preserve its dominant position in digital search while exploring new verticals for growth.
These initiatives are especially relevant given the emergence of new challengers, such as Perplexity’s recently launched AI-powered web browser, Comet, which some analysts see as a potential threat to Google’s longstanding market leadership.
Expanding footprint in energy and health, regulatory hurdles persist
Beyond its advertising and AI efforts, Alphabet has been expanding its presence in other sectors.
Google recently signed a landmark deal with Commonwealth Fusion Systems to purchase 200 megawatts of power from the ARC fusion energy project in Virginia.
This agreement is notable for being the first direct corporate power purchase involving fusion energy technology. Google is also deepening its investment in Commonwealth Fusion.
In the health sector, Google has launched new partnerships with organizations, including Grand Challenges Canada and the Wellcome Trust, to explore the use of AI in mental health treatment. These initiatives aim to expand access to care and develop innovative therapeutic approaches.
However, Alphabet continues to navigate regulatory challenges.
The company is facing increased antitrust scrutiny from the European Union and has proposed adjustments to its search results. Discussions with EU regulators are scheduled in Brussels in the coming weeks.
In advertising-related developments, Chinese e-commerce platform Temu has resumed digital ad campaigns on Google following a pause, coinciding with a newly announced trade agreement between the US and China.
This resumption could offer a small but meaningful boost to Alphabet’s ad revenue.
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