As fears swirl about synthetic intelligence upending Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s dominance in search, Deepwater Asset Administration’s Gene Munster says the corporate is sending one message loud and clear — AI is boosting, not breaking, its core enterprise.
Munster Says Google’s Search Is Thriving, Not Threatened
In a observe shared Monday on social media, Munster wrote, “$GOOG has a message for buyers: Search is doing tremendous.”
Munster pointed to feedback from Liz Reid, Google’s head of Search, who appeared on The Wall Avenue Journal’s “Daring Names” podcast final week.
Whereas the looks might need appeared routine, Munster mentioned the timing — simply weeks earlier than Alphabet studies earnings on Oct. 29 — was deliberate and telling.
“Any feedback an organization makes simply earlier than reporting earnings must be overweighted,” Munster wrote. “Liz Reid’s message two weeks earlier than earnings was that AI is having a constructive impression on Search.”
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AI Overviews Are Serving to Google, Not Hurting It
Munster expects Google’s search income to develop about 11.7% within the September quarter, barely above Wall Avenue’s 11.2% estimate, even amid more durable year-over-year comparisons tied to election advert spending.
“One metric we must always get is month-to-month AI Mode customers. I imagine it’s going to skyrocket to over 300m in September, up from over 100m in June,” he said.
Competitors Is Rising, However Google’s Grip Stays Agency
Munster additionally talked about Reid’s acknowledgment of rising competitors from Microsoft Company’s (NASDAQ:MSFT) Bing, which has gained modest share since integrating OpenAI’s ChatGPT, from 3% in mid-2023 to roughly 4% in 2025.
Nonetheless, Munster downplayed the danger, saying Google’s search share stays round 85–90% globally.
Analysts Again Google’s AI-Pushed Power
Wall Avenue analysts agree that AI is increasing Google’s whole addressable market, not cannibalizing it.
Final month, Truist Securities analyst Youssef Squali said in a observe that AI chatbots, reminiscent of ChatGPT and Perplexity, are increasing the TAM of Search, fairly than changing it, whereas sustaining a Purchase ranking and elevating his value goal to $285.
Earlier this month, Perplexity AI CEO Aravind Srinivas mentioned that for the primary time in 20 years, Google is actually susceptible, warning that the corporate’s heavy reliance on high-margin search promoting has turn out to be a strategic danger.
Value Motion: Alphabet Inc.’s Class A shares rose 3.30% on Monday, whereas its Class C shares slipped 3.01%, in line with Benzinga Professional information.
Benzinga’s Edge Inventory Rankings point out that GOOG continues to display strong momentum throughout brief, medium and long-term timeframes. An in depth evaluation of its efficiency metrics will be discovered right here.
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and revealed by Benzinga editors.
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