Alphabet stock is climbing after strong earnings. Search revenue keeps growing, easing AI fears.
Bank of America’s Justin Post raised Google’s price target to $217 from $210. He pointed to steady Search results as a sign that the AI shift won’t kill revenue.
Post highlighted AI Overviews boosting Search queries by 10% where AI is involved. Overviews now have 2 billion monthly users. Gemini app counts 450 million monthly active users. 
RBC Capital’s Brad Erickson also raised his price target, from $200 to $220. He said AI competition isn’t slowing Google’s growth despite traffic headwinds.
The company hasn’t revealed exact AI revenue yet, focusing instead on how AI fuels existing business growth.
Capital spending for the year just jumped from $75 billion to $85 billion, driven by AI infrastructure like data centers and servers.
Erickson said of the investments:
"AI investment decisions are being made with clear ROI signals in front of it."
