Alphabet faces AI threats, aims to show tech investment benefits. AI startups challenge Google Chrome’s dominance. Alphabet integrates AI into search to enhance advertising appeal. Google adds AI-only mode to search. Wall Street watches for returns from Big Tech’s $320 billion AI spending. Google reassures with strong Q1 earnings driven by AI demand.

OpenAI and Perplexity’s browsers intensify pressure on Google’s search business. Analysts warn of potential impact on revenue if advertisers shift. Waymo, Alphabet’s autonomous cab division, gains attention as Tesla tests fleet in Austin, Texas. Alphabet expected to report an 11% revenue increase in Q2, with advertising revenue up 7.5% and cloud computing segment up 26.2%. EPS expected to be $2.18.

Alphabet shares flat, lagging behind other megacap stocks. Rated “buy” with a median price target of $203.84 by 55 brokerages. Analysts predict positive growth in revenue and earnings for Alphabet in Q2.

Read more at Yahoo Finance: Alphabet will seek to reassure investors as AI rivals step up competition