03:09 PM EDT, 10/30/2024 (MT Newswires) -- Alphabet's (GOOG) Q3 commentary on artificial intelligence is "countering" the AI bear case on both search and higher infrastructure cost, RBC Capital Markets said in a note emailed Wednesday.

During the earnings call, Google ( GOOG ) parent indicated it was seeing clear evidence that AI integrations across its products and services was driving new types of queries and creating incremental monetization opportunities.

Meanwhile, management's commentary on managing cost efficiencies to offset higher spending on developing infrastructure is also likely to be well received by the bulls, according to the firm.

RBC said it was "surprised" that the company's management commented on the recent remedies proposed by the US Department of Justice in its search engine case against the tech giant.

RBC said the commentary was a "cake topper" for the firm as management's remarks that the proposed remedies would have unintended negative consequences would not have come without evidence.

The firm raised its price target on the stock to $210 from $200 with an outperform rating.

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