Alphabet (GOOG, GOOGL) is confident it can manage through the uncertain macro environment as it touts potential benefits from artificial intelligence, Oppenheimer said in a note emailed Friday.

The company reported "solid" Q1 results, with revenue largely in line with Wall Street expectations and services margins helping drive earnings per share 7% above consensus estimates, excluding a $10 billion unrealized gain, Oppenheimer said.

A key driver of optimism is the early success of Google's AI Overviews in Search, which the company reported is being used by over 1.5 billion monthly active users, analysts said in the note. Monetization of these AI-powered searches is expected to be similar to traditional non-AI searches, they said.

Cloud demand also remained strong, growing 28% year-over-year, slightly below the previous quarter's 30% growth. While the company did not provide quarter-to-date commentary, it noted a "slight" headwind and tougher comparisons in financial services, Oppenheimer said, adding "overall tone was upbeat."

Oppenheimer raised its price target to $200 from $185 and reiterated its outperform rating on the stock.

Shares of Alphabet were up 1.5% in recent Friday trading.

Price: 163.93, Change: +2.46, Percent Change: +1.52