Proactive Investors - Google’s developer conference firmed up the Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG)-owned technology giant’s position as an industry leader in artificial intelligence (AI), analysts say.
Following the event on Tuesday, Oppenheimer analysts noted: “We continue to see Google as a net AI beneficiary.
“[We] believe growing generative-AI integrations should likely help drive higher usage and incremental spend across search, cloud and workspace.”
Google had unveiled plans to roll out search generative experience, powered by AI, to US users and eventually those globally, which Oppenheimer said indicated progress on “use cases and monetization”.
Upgraded versions of Google’s Cemini and Gemma 2 chatbots, a new image-related large language model, alongside the latest generation of tensor processing units to power such models were also announced.
Oppenheimer noted these should grow Google’s user base by offering a broader range of models at different prices, while also reducing internal costs.
“There is no question that Google is an AI usage leader,” Oppenheimer said, pointing to data showing 2 billion users and 1.5 million developers accessing Gemini.
“We think I/O [the conference] supported our thesis that Google has industry-leading AI and machine learning capabilities and pace of AI innovation has accelerated.”
A ‘buy’ rating was maintained as a result, alongside a share price target of US$200, marking a prospective rise of 16% on Tuesday’s close.