Bank of America Securities released a research report stating that the anticipation of Alphabet's (GOOGL.US) performance has brought positive support to the industry, with an expected second-quarter revenue and GAAP earnings per share of USD 70.9 billion and USD 1.91, respectively. The bank expects its operating expenses to reach USD 22.7 billion, and the core profit margin will increase by 183 basis points to 37.2% year-on-year, while other income growth will also drive up earnings per share.

The bank expressed optimism about the growing integration of artificial intelligence in the entire Google ecosystem. While AI poses long-term competitive risks to the market, short-term revenue growth driven by AI-monetized improvements will be a key point of the second quarter. The bank raised the group's target price from USD 200 to USD 206 and reiterated a "buy" rating.