Analysts review Google-parent stock price target after…
Back in December, Sundar Pichai had some big news to share. "Every technology shift is an opportunity to advance scientific discovery, accelerate human progress, and improve lives," Pichai, the CEO of Google parent Alphabet wrote in a blog post. "I believe the transition we are seeing right now with AI will be the most profound in our lifetimes, far bigger than the shift to mobile or to the web before it."
Impact of Gemini on Google's Products
Pichai said that millions of people were using generative AI across the search engine giant's products "to do things they couldn’t even a year ago." "Now, we’re taking the next step on our journey with Gemini, our most capable and general model yet, with state-of-the-art performance across many leading benchmarks," he said.
Various Versions of Gemini
Alphabet said it was making three versions of Gemini, originally known as Bard, each of which is designed to use a different amount of processing power. The most powerful version is designed for data centers, and the smallest will run efficiently on mobile devices. picture alliance/ Getty Images
Integration of Gemini with Music Services
Google recently rolled out its new YouTube Music Gemini extension, which lets users connect YouTube Music to the AI bot to access their music library. Reports indicate that Google is planning a similar move for Spotify (SPOT).
Analysts' Perspective on Gemini & Apple's WWDC
Analysts took another look at Gemini in light of Apple's (AAPL) 2024 Worldwide Developers Conference, where Apple unveiled Apple Intelligence and announced a partnership with OpenAI to integrate ChatGPT into Apple’s digital assistant, Siri.
Bank of America Securities Viewpoint
Bank of America Securities analysts expressed concerns that any deal between Apple and Open AI could affect Alphabet stock negatively. They noted that Apple's statement about expanding support to other large language models (LLMs) could lead to potential integration of Gemini into iOS, offering new AI opportunities and search usage.
Morgan Stanley & Evercore ISI Analysis
Morgan Stanley analyst Brian Nowak and Evercore ISI analyst Mark Mahaney both reviewed Alphabet's position post-Apple's WWDC. Nowak emphasized the need for Google to develop its products and saw potential for Alphabet's GenAI offerings to surpass those on iOS. Mahaney raised the firm's price target on Alphabet shares and maintained a positive outlook on Google's competitive position in both core search and Gen AI search.
