Alphabet: Analyst Praises Apple, Walmart Deals As 'Solid Gemini Endorsement'

Google parent Alphabet Inc (NASDAQ:GOOG) has bagged deals with both Apple Inc (NASDAQ:AAPL) and Walmart Inc (NASDAQ:WMT), which represent "a solid Gemini endorsement," according to BofA Securities.

The Alphabet Analyst: Analyst Justin Post maintained a Buy rating, while raising the price target from $355 to $370.

The Alphabet Thesis: Apple has inked a multi-year collaboration to use Google's Gemini LLM (large language model) and cloud technology for the next generation of Apple Foundation Models, Post said in the note.

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"Google models will help power future Apple Intelligence features, including a more personalized Siri, expected later in 2026," he wrote.

Google has also signed a deal with Walmart, under which the e-commerce giant's inventory will be available for customers to purchase on the Gemini app, while the LLM can make more personalized recommendations and offer same-day delivery benefits, the analyst stated.

"We think the Apple and Walmart deals warrant a higher multiple given increased evidence of traction for Google’s Gemini capabilities, and potential for AI-driven monetization upside," he added.

GOOG Price Action: Shares of Alphabet had risen by 1.74% to $338.53 at the time of publication on Tuesday.