AI sentiment toward Google seen improving rapidly after Gemini launch; Shares gain
Alphabet (NASDAQ:GOOGL) stock is up more than 3% in early New York trading on Thursday following the release of Gemini, described as Google's «largest and most capable AI model» to date.
Analysts have responded positively to this long-anticipated AI model, contributing to the upward movement in Alphabet's stock. Alphabet shares fell 0.7% yesterday during the event presentation but are now up 3.4% after Wall Street analysts weighed in positively on the Gemini rollout.
Yesterday, both the Google CEO and Google DeepMind CEO jointly hosted a virtual conference to unveil Gemini, the highly anticipated multi-modal Large Language Model (LLM), positioning it as a competitor to OpenAI’s ChatGPT.
Gemini comes in three variants: Ultra, designed for complex tasks; Pro, for scaling across various tasks and integrated into Google products like Gmail, YouTube, and Docs through Bard starting immediately; and Nano, optimized for efficient on-device tasks.
Gemini Ultra is set to launch early next year, while Gemini Nano will be directly available on Pixel 8 devices, Google said.
“We are impressed with the speed of AI innovation at Google this year. We believe Google has delivered more innovative AI products, exceeding Microsoft and OpenAI's output, particularly after having a late start in the AI wars and completing a somewhat disruptive re-org in April this year,” analysts at Roth MKM wrote in a client note.
“We are now incrementally positive about what Google AI could deliver in 2024 and its unique position to have an amplified benefit from multi-modal AI capabilities inside its eight apps with more than a billion monthly active users.”
Along these lines, the price target was hiked by $14 to $166 per share.
“While the Street mostly
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