Alphabet’s stock is reportedly headed toward a $2 trillion market value, driven by investors becoming more optimistic about the company’s strategy in the artificial intelligence (AI) field.
Reaching the $2 trillion milestone would be a record for the tech company and would place it among the three U.S. firms that have already topped that market value: Microsoft, Apple and Nvidia, Bloomberg reported Thursday (April 10).
Alphabet’s stock is up 12% this year, after seeing a drop in March due to investors’ concerns that it was falling behind on AI, according to the report.
The company has experienced some setbacks with its consumer-facing AI tools, and its strategy for monetizing AI is unclear, but it displayed its enterprise-focused AI model at an event this week and investors see a growth opportunity around its role in generative AI products, the report said.
During its cloud computing conference this week, Alphabet showed the capabilities its Gemini AI product has when it comes to advertising, cybersecurity, short videos and podcasts, per the report. In addition, Alphabet-owned Google unveiled a chip designed for AI.
Alphabet’s stock has also benefited from reports that Apple is considering using Gemini to power AI services for its devices, according to the report.
Google unveiled a slew of new AI-powered capabilities Tuesday (April 9) during a keynote presentation at its annual Cloud Next event.
Among them were Google Vids, an addition to Google Workspace that allows users to create and edit videos collaboratively using AI-powered features, and Gemini Code Assist, which is an enterprise-level AI code completion tool designed to rival GitHub’s Copilot Enterprise.
The announcement of these and other business-focused AI updates to Google Workspace came at a time when the impact of AI software for B2B applications is top of mind for companies looking to modernize their workflows, PYMNTS reported Wednesday (April 10).
Google’s ambition with its enterprise AI products is not just to streamline tasks, but to automate processes.
“With these … advances, enterprises can do things today that just weren’t possible with AI before,” Google CEO Sundar Pichai said during the Cloud Next event.
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