BMO Capital has raised its price target for Google (GOOG) to $294 from $225, signaling a potential 30% upside. The upgrade is driven by advancements in AI, along with strong performance in Search and Google Cloud, highlighting Alphabet’s leadership in technology and innovation.

However, industry experts caution that Google’s major AI investments face challenges, as high development costs and the proliferation of similar AI models could limit the expected returns. Investors are weighing these risks against the company’s growth potential in emerging AI markets.

Meanwhile, Alphabet shares rose over 1%, benefiting from a broader technology sector recovery and optimism fueled by positive trade developments and corporate earnings forecasts. The combined effect of AI innovation and market sentiment positions Google as a key driver in the tech market moving forward.