5 big analyst AI moves: Google reaffirmed as top pick after Gemini agent launch

Five significant analyst moves in the AI sector this week have solidified Google's position as the top pick, following the launch of its Gemini Agent. BMO Capital Markets has reaffirmed its Outperform rating and Top Pick status for Alphabet, citing the company's well-equipped position to scale AI agents across various workflows.

The analysts highlighted a substantial 98% drop in cost per token since 2024, even as AI-related revenue has surged on the back of growing enterprise volumes. Google Cloud customers are already heavily utilizing Google's AI products, with roughly 80% of them in use. BMO also emphasized the importance of full-stack ownership for Alphabet, which they believe will allow the company to benefit from optimizations at each layer of the AI stack as it scales.