Alphabet’s stock is nearing a record $2 trillion market value, a milestone surpassed in the U.S. only by Microsoft, Apple, and Nvidia. The stock has rebounded from last month’s low, when concerns arose over the company’s AI progress.
The recent cloud event demonstrated the enterprise-readiness of Alphabet’s AI model despite previous issues with consumer-facing tools. Investors are focusing on upcoming earnings and a developer conference in May. Although Alphabet’s AI monetization path remains uncertain, its relatively low valuation keeps it attractive to many on Wall Street.
Alphabet’s flawed Gemini product was seen as a major setback, but the company’s cloud computing conference offered reassurance by showcasing Gemini’s capabilities in advertising, cybersecurity, and content creation. Additionally, Apple’s consideration of using Gemini technology for AI services boosted the stock’s rebound. Alphabet shares have risen 12% this year.
Analysts believe that Google’s hardware advances, Gemini progress, and AI app demonstrations are positive signs for the stock. JP Morgan Chase & Co. predicts that Gemini integration could lead to over 20% revenue growth for Google Cloud.
