In an optimistic move, Wedbush analysts have upgraded their price target for Google-parent company Alphabet (GOOGL), expressing confidence that it will outperform other big-cap technology peers. As of Thursday's market close, Google stock had only increased by 5.6% in 2024, compared to Microsoft's (MSFT) 14.2% and Amazon's (AMZN) 17.2% gains. However, Wedbush analysts Scott Devitt and Daniel Ives are starting to see signs of a positive shift in sentiment.

To reflect their increased optimism, Wedbush raised its price target on Google stock from 160 to 175. The analysts believe that Google's perceived risks in its search business are overstated and view Alphabet as a net beneficiary of generative artificial intelligence (AI). They highlight Alphabet's multifaceted competitive advantages, emphasizing the company's access to vast amounts of data, which aids in the development and training of AI models.

Interestingly, talks have surfaced regarding a potential licensing deal between Google and Apple. The discussions involve licensing Google's "Gemini" AI training model for use in iPhones. This news follows recent controversy surrounding historically inaccurate images generated by Google's Gemini-powered gen AI chatbot.

While these developments are underway, Google stock experienced a boost in trading, climbing 1.8% to reach 150.31 in morning trading. Moreover, the stock has bounced back above its 50-day moving average. Currently, it is trading 4% below an entry point of 153.78.

As the technology landscape evolves, investors are keeping a close eye on Google and its potential for growth. With increased optimism from Wedbush analysts and talks of a possible Apple licensing deal, the future looks promising for Google-parent Alphabet.