Bank of America revamps Alphabet stock after Google enters two key partnerships

Investors are taking a caller look astatine Google, arsenic caller partnerships tied to its Gemini models assistance propulsion the banal higher.

On Jan. 11, Google and Walmart (WMT) said they program to rotation retired a caller buying acquisition wrong Google’s Gemini chatbot, highlighting a imaginable caller gross way for Google.

Under the partnership, Gemini volition aboveground Walmart and Sam’s Club products during applicable searches, allowing users to determination from merchandise find to acquisition wrong the Gemini app.

On Jan. 12, Google confirmed that it has entered into a multi-year collaboration with Apple (AAPL), with Apple to usage Google’s Gemini models and AI exertion successful Apple Intelligence features, including a amended Siri aboriginal successful 2026, according to a associated statement.

"After cautious evaluation, Apple determined Google's AI exertion provides ‌the astir susceptible instauration for Apple Foundation Models," Google said.

The iPhone remains 1 of the astir almighty user gateways successful the world, and the Apple Google concern reinforces Alphabet’s AI lasting arsenic contention intensifies with OpenAI and different AI rivals.

Alphabet (GOOGL), the Google genitor company, reached $4 trillion valuation this week, marking different milestone for the stock. The banal is up 5.3% year-to-date already.

In 2025, Alpabet shares jumped 65.35%, the strongest show among the Magnificent Seven tech stocks. With Gemini gaining traction among large partners, analysts are revisiting their assumptions for Google’s maturation and its stock’s upside.

Bank of America analysts Justin Post and Nitin Bansal person raised the firm’s banal terms people for Alphabet to $370 from $335, reiterating a bargain rating, according to a probe enactment sent to TheStreet.

“We deliberation the Apple and Walmart deals warrant a higher aggregate fixed accrued grounds of traction for Google's Gemini capabilities, and imaginable for AI-driven monetization upside,” the analysts wrote.

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Bank of America said the Apple woody is “an important endorsement for Google’s AI capabilities,” which could fortify Gemini’s presumption successful mobile AI and reenforce investors' assurance successful Google’s hunt organisation and semipermanent monetization connected Apple devices.

For the Google-Walmart deal, the analysts judge Google could payment arsenic buying postulation shifts from accepted hunt to agent-led experiences, and Gemini whitethorn thrust higher conversion rates.

"The Agentic conflict successful eCommerce is taking shape, with ample retailers partnering with Google and OpenAI, and Amazon gathering its ain agentic inhouse capabilities," the analysts wrote.