TD Cowen Weighs In on Alphabet (GOOG) Following GenAI Adoption Survey
TD Cowen analyst John Blackledge reiterated a Buy rating and $375.00 price target on Alphabet (NASDAQ: GOOG).
The analyst commented: "GOOG remains well positioned amid burgeoning AI adoption and rise of Agentic AI: Gemini was the 2nd-most-used AI agent among surveyed organizations (55% of respondents formally subscribe to and utilize Gemini, behind Copilot and slightly ahead of ChatGPT). Meanwhile, 92% of respondents use at least one of these top three AI agents, and a majority of them stated they plan to upgrade their primary productivity suite license in the next 12-18 months. We view GOOG as benefiting from increased engagement and momentum across its AI offerings, and we believe engagement has inflected higher following the Gemini 3 LLM release in late '25. The company at 4Q25 earnings (2/5/26) reported accelerating Cloud rev, up 48% y/y, with mgmt citing accelerating growth in Enterprise AI products coupled with strong core GCP growth; Cloud backlog also increased 55% q/q and more than doubled y/y. GOOG expects the tight AI supply/demand dynamic to continue throughout '26.
Google hosted its Cloud Next Conf this week, we expect strong growth in agentic workflows after GOOG announced several new products incl. Gemini Enterprise Agent Platform, Agentic Data Cloud, among others. GOOG also launched two next gen TPU chips for training & inference. Google Cloud CEO said 75% of customers leverage AI Solutions as AI moves beyond experimentation & across the whole enterprise.
Gemini Enterprise Agent Platform is Google Cloud's new, comprehensive platform to build, scale, govern, and optimize agents and is the foundation for the Agentic Enterprise. It is the primary developer platform and the evolution of Vertex AI. It provides the infrastructure to build, scale and govern fleets of autonomous agents. It provides developers with a comprehensive way to manage every aspect of their agents, and deliver them through the Gemini Enterprise app."
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Shares of Alphabet closed at $337.75 yesterday.