Alphabet shares rose more than 1.7% on Monday as investors returned to technology stocks and analysts maintained a broadly positive outlook on Google’s parent company ahead of its upcoming quarterly results.
The stock opened the week higher after losing close to 2.5% in the last session. The recovery came alongside a broader rebound in technology shares, with the Philadelphia Semiconductor Index climbing more than 2.5%, ending an eight-session losing streak that marked its longest such run since 2008.
All three major US stock indexes moved higher toward midday as investors reassessed the outlook for artificial intelligence companies following last week’s sell-off. Easing oil prices and relatively stable Treasury yields also provided some relief to equities, although questions remain about the scale of AI spending and the returns it can ultimately generate.
Google prepares another Gemini upgrade
Alphabet’s gains came as competition among major artificial intelligence developers continued to intensify.
The Information reported Monday that Google, OpenAI and Anthropic were preparing new AI models as companies compete to improve their products and strengthen their positions in the market.
Google is reportedly developing Gemini 4 Carbon, an upgrade to its recently released Gemini 4 Argon model. According to the report, Google’s models have demonstrated strengths in visual tasks, including video analysis and website testing.
The latest reported development adds to Google’s efforts to improve its AI capabilities as it competes with OpenAI, Anthropic and others for users and enterprise customers.
Google also announced new features for Gemini Notebook, its AI-powered tool designed to help students prepare for examinations.
Among the additions are Short Video Overviews, which turn complex subjects into videos lasting about 60 seconds, and interactive Learning Overviews that combine summaries with materials such as presentations, quizzes and flashcards. The content is grounded in users’ coursework, while new quiz formats give students additional ways to test their knowledge.
The updates expand Google’s efforts to incorporate AI into learning and productivity tools, potentially strengthening engagement across its software ecosystem.
Analysts maintain bullish outlook on Alphabet
Wall Street firms have continued to back Alphabet’s longer-term prospects, although some have signalled that expectations reflected in the share price may already be demanding.
KeyBanc lowered its price target on Alphabet to $410 from $435 while retaining its Overweight rating. Analyst Justin Patterson said the company remained well positioned in the AI market but cautioned that much of the positive outlook may already be reflected in the stock’s valuation.
UBS raised its price target slightly to $380 from $379 last week while maintaining a Neutral rating.
JPMorgan also increased its target on Alphabet to $425 from $420 on October 15. Analyst Doug Anmuth cited rapid expansion in Google Cloud and strong enterprise demand for Google’s custom Tensor Processing Units (TPUs), the chips designed to accelerate AI workloads.
The analyst commentary highlights two important elements of Alphabet’s investment outlook: its ability to compete in the rapidly evolving AI market and the growth of its cloud computing business.
Alphabet is scheduled to report third-quarter earnings on October 28, giving investors an opportunity to assess whether its AI investments are translating into stronger business performance.
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