Alphabet Inc. (GOOGL) shares have surged following a series of bullish analyst reports and strong investor sentiment after the Google I/O 2025 developer conference. The company introduced several artificial intelligence advancements, including Gemini 2.5, AI Mode in Search, and a premium subscription service, Google AI Ultra, priced at $249.99 per month. Google AI Ultra provides access to Gemini's full capabilities, the AI filmmaking tool Flow, 30 terabytes of storage, and a YouTube Premium subscription. Major Wall Street firms reiterated positive outlooks on Alphabet: KeyBanc and JPMorgan maintained Overweight ratings and a $195 price target, BofA kept a Buy rating with a $200 target, Goldman Sachs set a $220 target, Evercore ISI issued an Outperform rating with a $205 target, and Morgan Stanley maintained an Overweight rating with a $185 target. Analysts highlighted Alphabet's strong position in AI, noting Gemini's leadership on foundational model benchmarks and new monetization strategies. AI Overviews have reportedly boosted overview-type search queries by roughly 10% in the U.S. and India. BofA described Alphabet's shift to 'offense' in search as its 'Reels moment' against OpenAI. Analysts expect Alphabet's AI initiatives to accelerate growth in its core Search and advertising businesses. Investor activity has been robust, with heavy call option buying and GOOGL shares rising over 5% on May 21 and up another 4% on May 22. The stock traded above $172 and approached the 200-day moving average at $170.60. The Magnificent Seven ETF (MAGS) also gained more than 1% as Alphabet's rally lifted the broader tech sector. Analysts and investors are watching whether Alphabet's AI-driven strategy will push the stock to the $200 level by year-end.