<div id="readability-page-1"><div><div>Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) reported stronger engagement across its AI ecosystem in September, driven by a surge in Gemini’s user growth following the rollout of its viral image-generation tools.Meanwhile, Google Search traffic remained stable, underscoring the platform’s resilience amid rising competitive pressure from OpenAI’s ChatGPT.Bank of America analyst Justin Post maintained a Buy rating on Alphabet with a price forecast of $252, based on a 22x multiple of 2026 estimated core Google GAAP EPS plus cash per share.Also Read: Alphabet’s Gemini Redesign Could Lift Engagement But Risk User DisruptionThe analyst shared September web traffic data from Similarweb, showing continued strength for Google and significant momentum for Gemini.Globally, average daily web visits to Google rose 0.8% year-over-year to 2.8 billion, while ChatGPT surged 90% to 197 million, and Bing declined 2.2% to 116 million. On a month-over-month basis, Google traffic increased 1.8%, ChatGPT rose 4.0%, Bing fell 2.7%, and Gemini grew 54%.In the U.S., Google’s web visits were flat year-over-year at 537 million, ChatGPT was up 124% to 33 million (about 6% of Google traffic), and Bing increased 9% to 48 million. On a month-over-month basis in the U.S., Google traffic increased by 3.2%, ChatGPT rose by 16%, Bing declined by 8%, and Gemini advanced by 37%.The bank cited Sensor Tower data showing strong growth in mobile daily active users (DAUs) across AI platforms in September. Google’s global mobile DAUs increased 13% year-over-year (flat month-over-month) to 2.0 billion, while ChatGPT rose 452% year-over-year to 345 million, and Bing declined 13% to 5 million. Perplexity grew 446% year-over-year to 9 million, and Grok reached 5.7 million.During September, Gemini added 8 million global DAUs, ChatGPT gained 15 million, Perplexity added 1 million, and Grok added 1.8 million, highlighting that AI capabilities are driving incremental mobile engagement. Analyst noted that in mid-September, the viral popularity of Google’s “Nano Banana” image generation model significantly boosted Gemini’s traffic and downloads, briefly propelling the app to the No. 1 spot on major app stores.The bank stated that Statcounter data showed Google’s global search share improved month-over-month in September. Globally, Google’s market share rose 49 basis points (bps) month-over-month, compared to Bing’s 18 bps month-over-month increase.On a year-over-year basis, Google’s search share was up 38 bps to 90.4%, reversing a 59 bps decline seen in August. Bing gained 14 bps year-over-year to 4.1%, while Others (including Yandex, Baidu, Naver, DuckDuckGo, and smaller engines but excluding ChatGPT) declined 63 bps year-over-year to 4.1%.In the U.S., however, Google’s search market share fell 70 bps month-over-month to 85.0% and was down 297 bps year-over-year, while Bing’s share increased 55 bps month-over-month and 147 bps year-over-year to 8.5%.Google’s global mobile search share rose 69 bps month-over-month, while Bing declined 5 bps month-over-month. Year-over-year, Google’s mobile share was up 44 bps (vs. down 74 bps in August) to 94.6%, Bing was down 10 bps year-over-year to 0.7%, and Others declined 51 bps year-over-year to 3.9%.On desktop, Google’s global search share increased 91 bps month-over-month, while Bing declined 3 bps month-over-month. Year-over-year, Google’s desktop share rose 261 bps (vs. up 167 bps in August) to 82.2%, Bing lost 120 bps year-over-year to 10.6%, and Others declined 105 bps year-over-year to 4.4%.Bank of America highlighted that among emerging AI platforms, Perplexity.ai, Claude.ai, and Grok continue to lead in user growth. In September, Perplexity.ai’s global traffic rose 137% year-over-year to 6 million (up 20% month-over-month), Claude.ai increased 124% year-over-year to 5 million (up 8% month-over-month), while Grok declined 5% month-over-month to 6 million.Justin Post noted that global search interest for ChatGPT declined in September. Based on a seven-day average as of October 5, ChatGPT search interest was down 3% month-over-month, while Gemini increased 39% month-over-month and Bing remained flat.Among emerging large language model (LLM)-based search platforms, Perplexity.ai maintained relatively higher keyword search interest, rising 2% month-over-month, whereas Claude declined 6% month-over-month and Grok was flat month-over-month.Bank of America projects steady earnings growth for Alphabet over the next three years, estimating earnings per share of $10.06 in 2025, rising to $10.60 in 2026 and further to $11.58 in 2027. This represents year-over-year growth of 25.1% in 2025, followed by 5.4% in 2026 and 9.2% in 2027.Price Action: GOOGL shares were trading lower by 0.45% to $244.66 at last check Wednesday.<ul> <li>POET Technologies Stock Continues To Climb: What’s Going On?</li> </ul>Photo by JHVEPhoto via Shutterstock</div></div></div>

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Alphabet Inc. reported increased engagement in its AI ecosystem, particularly with the Gemini tool, which saw a significant rise in user growth due to its viral image-generation features. Bank of America analyst Justin Post maintained a Buy rating on Alphabet, projecting a price target of $252. Despite competitive pressures, Google Search traffic remained stable, with global web visits increasing. The report highlighted strong growth in mobile daily active users across AI platforms, with Gemini adding 8 million users in September. Alphabet is expected to see steady earnings growth over the next three years.

- Alphabet Inc. reported increased engagement in its AI ecosystem in September, particularly due to Gemini's user growth from new image-generation tools.  
- Google Search traffic remained stable, with a slight year-over-year increase in global web visits, while ChatGPT and other AI platforms saw significant user growth.  
- Bank of America maintains a Buy rating on Alphabet, projecting steady earnings growth over the next three years, with estimated earnings per share rising from $10.06 in 2025 to $11.58 in 2027.

Alphabet Sees Gemini Surge As Viral AI Tool Drives Downloads