GOOG Stock Alert: AI News From Google I/O Sends Shares Soaring

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  • Google recently completed its annual I/O conference for developers.
  • It laid out its plans for continue its artificial intelligence (AI) market expansion.
  • This news has sent GOOG stock soaring as investors eye a profitable future.
GOOG stock - GOOG Stock Alert: AI News From Google I/O Sends Shares Soaring

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Yesterday kicked off the annual Google I/O conference, one of the tech sector’s most highly anticipated events. The tech giant made artificial intelligence (AI) a central theme of the event, highlighting its plans to use generative AI to enhance users’ search results. After facing criticism for being slow to join the AI race as the technology engulfed markets in late 2022, the company seems determined to compensate for lost time. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has reminded investors why it is still a leader in AI development. GOOG stock has responded well to the company’s updates, demonstrating that the market is happy with Google’s plans to continue its AI expansions in the coming year.

Most of what the company provided isn’t surprising, as AI continues to dominate markets at an impressive pace. Nevertheless, Google’s updates are worth a closer look, as they remind us why GOOG stock has plenty of room to run in 2023 and continue riding the AI wave to the top.

What’s Happening With GOOG Stock

Both Alphabet’s Class A and C shares have been rising steadily since markets opened today. As of this writing, both GOOG stock and GOOGL stock are up more than 5% for the day. This should be expected, as the company showed investors precisely what they wanted to see at the conference; that it is focused on streamlining its AI development and implementation. When Google initially rolled out its Bard chatbot in February 2022, it generated significant criticism when a simple error revealed a hole in the company’s early-stage technology. However, as InvestorPlace reported, Google still demonstrated notable progress that suggested it would quickly bounce back.

Only a few months later, GOOG stock is rising again as Google powers ahead with plans to continue its mission of keeping pace with its AI rivals. While the initial search experience won’t change much, further implementation of generative AI tools can help create more synthesized results in some cases. Per WIRED:

“A query about the coronation of Britain’s new king might be met with a couple of paragraphs summarizing the event. If asked about ebikes, Google’s algorithms can list bullet-point recaps of product reviews published by various websites, and link to online stores where a user can make a purchase. The revamped version of search will be accessible in the US via a new feature called Search Labs, but it will not be activated by default or for all Google users.”

Wall Street also seems happy with Google’s plans for action. Analyst Eric Sheridan of Goldman Sachs has issued a “buy” rating for GOOG stock and set a bullish price target of $132 per share, implying an upside potential of more than 18% from its current price point. Analysts from Morgan Stanley, Oppenheimer, JMP Securities and Bank of America Securities all rated the stock as a buy yesterday and maintained bullish price targets. The analyst rating consensus on TipRanks is that GOOG stock is a strong buy.

Why It Matters

It’s clear following the I/O conference that Google has always been well-positioned to dominate the AI market. As Sheridan noted, it really is the “leading collection of AI/machine learning-driven businesses.” Its size and resources have helped Alphabet conquer entire markets before, and AI is simply the next highly-profitable frontier. The company is gearing up to take on the next phase of tech, and GOOG stock is likely to soar as it does.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/05/goog-stock-alert-ai-news-from-google-i-o-sends-shares-soaring/.

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