Alphabet Relies on AI to Boost Search Growth: More Upside Ahead?

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Alphabet’s Search business is leveraging AI, particularly Gemini 3 integration, to enhance user engagement and drive growth, maintaining a dominant market share. Despite strong competition from Microsoft’s Bing and Baidu’s AI-powered tools, Alphabet reports increased query length and conversational sessions through its AI Mode. While the company’s shares have underperformed and its valuation is at a premium, its 2026 earnings are projected to grow by 7.3%.

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