Alphabet Soars 5.3%, Wall Street Reacts Positively to Gemini

$Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ Google's parent company, Alphabet, witnessed a surge of 5.3% in its stock price, marking the largest intraday percentage gain since July this year, and adding over $80 billion to its market capitalization. The market enthusiastically celebrated the recent launch of Google's latest artificial intelligence model, Gemini, viewing it as a reassuring move addressing concerns about its position in the fiercely competitive field of AI.

$Wells Fargo & Co (WFC.US)$ The trading division of Wells Fargo noted that Google's introduction of Gemini should be sufficient to quell market debates regarding its performance in the AI domain. Ahead of Thursday's U.S. stock market opening, investor demand for Google was strong, and reports from sell-side analysts provided positive evaluations. However, the primary question remains the monetization strategy for Gemini. Nevertheless, Wells Fargo believes that Google has demonstrated it still holds certain advantages.

$Bank of America (BAC.US)$ Analysts from Bank of America stated that concerns about Google's AI capabilities weighed on Alphabet's stock price this year. Therefore, a strong brand and competitive models may boost its consumer search business and enterprise cloud sales. "We believe Google has robust AI capabilities, and data suggests it possesses top-notch, proprietary AI abilities, which could positively impact its stock price in the first half of next year."

$JPMorgan (JPM.US)$ JPMorgan Chase believes that although much of Wall Street found Google's new product releases on Wednesday somewhat mundane, the progress Google has made in this significant technological shift is encouraging. While it may be premature, the release of Gemini represents a major innovation for Google as we enter the second year of the commercialization and widespread distribution of generative AI. However, the uncertainty about the monetization path in the search domain will be a future challenge.

KeyBanc analysts expressed that Gemini is the pinnacle of Google's numerous AI announcements this year. However, they believe it will take time for AI to have a meaningful impact on Google's performance and profitability. "Wednesday's release indicates that Gemini is still entering core products like search, so we recommend patiently gauging its impact. While we believe that 2024 will focus more on results than headlines, we also believe that, concerning changing behaviors of advertisers, consumers, developers, and businesses, we are still in the early stages."