Wall Street is witnessing a fierce competition for supremacy in artificial intelligence (AI), and Wedbush analysts think Alphabet, Google’s parent firm, is clearly winning. Wedbush has added Alphabet to its “Best Ideas List” and raised its price objective for the company considerably due to this optimistic outlook.
ALPHABET TAKES THE LEAD IN AI RACE
Wedbush is confident that Alphabet will not only overcome perceived threats to its core search business but will also significantly benefit from the rise of generative AI. This technology allows AI models to create realistic and creative text formats, images, and other content. Analysts credit Alphabet’s multifaceted advantage in the AI race for its projected success.
WEDBUSH BULLISH ON AI-FUELED TECH RALLY
Wedbush is a strong proponent of AI’s potential to ignite a tech boom reminiscent of the 1995 dot-com era. Their previous note predicted a 33% surge in tech stocks throughout 2024, fueled by AI advancements. Alphabet’s position at the forefront of this revolution makes it a prime candidate for significant growth.
DATA, USERS, AND PARTNERSHIPS: GOOGLE’S AI ADVANTAGE
Wedbush analysts highlight several factors that give Google a competitive edge in the AI race. These include:
- Massive Data Trove: Google possesses a vast amount of data to train its AI models, a critical factor in their effectiveness.
- Unprecedented User Base: Google’s dominance across products like Android, Search, and YouTube translates to a colossal user base that further enhances its AI development.
- Potential Collaboration with Apple: Rumors suggest a future partnership where Google’s powerful Gemini AI could be integrated into iPhones, further solidifying its position.
AI CONTROVERSY FAILS TO DERAIL ALPHABET’S GROWTH
Despite recent controversy surrounding the historical inaccuracies generated by Gemini, Alphabet’s stock has demonstrated resilience. While lagging behind some peers year-to-date, it has still managed to gain over 6%.
Alphabet is set to pop 15% as Google is a clear winner in AI, Wedbush says https://t.co/vDcHXoSzcF
— Markets Insider (@MktsInsider) March 22, 2024
CATALYSTS FOR FURTHER UPSIDE IN ALPHABET STOCK
Wedbush analysts identify several potential catalysts that could propel Alphabet stock even higher:
- Clearer Business Model for Search Generative Experience: Investors seek a more concrete understanding of how Google plans to monetize its AI-powered search experience.
- Cost-Effective AI Development: Optimizing spending on AI projects will be crucial for maximizing profitability.
- Strategic AI Partnerships: Collaboration with other companies on AI development could accelerate innovation and market reach.
WEDBUSH: ALPHABET REMAINS A LONG-TERM WINNER
As a leading player in the digital advertising space, Wedbush continues to hold its long-term optimistic position on Alphabet. It might take up a large chunk of the total media budget because to its wide reach and steady market share. Original Article!
