At the annual Google I/O 2023 conference, shares of Alphabet Inc (NASDAQ:) gained more than 4% Thursday thanks to the many announcements made by Google regarding the integration of artificial intelligence in applications such as Search, YouTube, Maps, Workspace, Google Cloud, Android and hardware devices like Pixel.
“A key theme of this year’s Google I/O keynote was integrating elements of (generative) AI into its core services, while demonstrating new areas of AI application and consumer use cases and corporate clients,” Goldman Sachs (NYSE:) analysts wrote in a note.
“We are increasingly positive about Alphabet’s long-term strategic positioning in many key markets, and continue to rank the company as the top AI/machine learning-focused company among stocks covered by our analysts.”
Jefferies analysts went further, saying Wednesday’s Google I/O conference “was one of the most substantial in years.”
“Redeeming itself after its disappointing Paris event in February, Google delivered a much more coherent message about its generative AI strategy, with updates covering both consumer and enterprise use cases, and with progress seen in Search, Workspace, Google Cloud and Android core industries. We see momentum picking up and monetization later this year,” Jefferies said, confirming the Buy rating and a $130 price target.
According to analysts at Evercore ISI, “Google has pulled off its AI gloves” and “reminded everyone how long it’s been investing, developing and deploying AI capabilities across its offerings.”
“Earlier this year, Microsoft (NASDAQ: ) attempted to change the AI narrative and position itself as a leader in AI development, based in part on its investment and partnership with OpenAI. Google just retracted this statement,” they wrote from Evercore.
We don’t believe that there will be just one AI winner. We just believe that the narrative that Google was a victim of generative AI was simply wrong and ignored the years of investment in AI and ML that Google has made. , including the major investment cycle that started in 2018.”
Original StreetInsider article