Alphabet shares jumped another 5% in morning trading on Thursday.

Shares of Google parent Alphabet surged Wednesday amid growing optimism about the tech giant's AI search capabilities in the wake of Google’s I/O conference keynote and rollout of its “AI mode” offering in the U.S.

“We come away more confident that Google can successfully navigate the shift to AI Search,” JPMorgan analysts said following the event. The analysts reiterated an “overweight” rating and $195 price target, just above the analyst consensus of $194 compiled by Visible Alpha.

Shares of the Google parent closed up 2.8% at $168.56 on Wednesday, with JPMorgan’s target suggesting roughly 16% upside. Alphabet shares have lost about 10% so far in 2025.

Google I/O underscored the capabilities of the tech giant’s Gemini large language model, Bank of America said. “With an improved LLM and growing AI integration benefits across products, we see [Google’s] AI assets as underappreciated,” the bank said in a note to clients. 

I/O also saw the unveiling of Google AI Ultra, a new $249.99 subscription service that offers access to Google’s most advanced AI tools, including Gemini 2.5 Pro Deep Think mode for research and the AI filmmaking tool Flow. Google AI Ultra “should be competitive” with OpenAI’s $200 per month ChatGPT Pro offering, BofA analysts said. The bank maintained a price target of $200.

Meanwhile, Morgan Stanley and Citi analysts reiterated targets of $185 and $200, respectively.