Google’s parent alphabet (GOOGLE) job third quarter result which exceeded Street’s expectations and showed artificial intelligence (AI) progress, with analysts at JPMorgan and Citigroup noting the tech giant’s strong Google Cloud revenue.

JPMorgan raised its price target for Alphabet from $208 to $212 and reiterated its “overweight” rating.

The broker noted “Google’s increased confidence” in rolling out its AI search business; its strong cloud business, with revenue growth of 35% year-over-year during the quarter; and higher operating profits given the company’s plans to “reorganize the cost structure” which explains the higher price target.

JPMorgan notes expansion of AI presentation service

JPMorgan analysts said Google’s AI Overviews service (its AI-generated research summaries) is rolling out to 100 new countries and territories with a reach of more than 1 billion users per month, and “monetizes at about the same rate as others.” AI searches” in terms of advertising.

On the call for company resultsAlphabet Chief Executive Officer (CEO) Sundar Pichai said the company has seen an increase in Google Search usage among people who use AI insights, and that Google Lens performs 20 billion visual searches every month.

Citi analysts stuck with their “buy” rating and $212 price target for Alphabet. The broker, like JPMorgan, highlighted Google Cloud’s “accelerated growth driven by increased demand for GenAI,” thanks in part to Alphabet’s Gemini. large language model.

Alphabet shares jumped more than 5% Wednesday afternoon and have gained 28% this year.