Alphabet's AI Market Share Rapidly Expanding
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
- Market Share Growth: Alphabet's Gemini AI is rapidly capturing market share, increasing from 7% in 2022 to 21% in 2023, and is expected to surpass ChatGPT this year, demonstrating strong competitiveness in the generative AI space.
- Hardware Competitive Advantage: Alphabet's TPU chip serves as an alternative to Nvidia's GPUs and is being extensively utilized by Anthropic, which is likely to create additional hardware demand for Alphabet and further solidify its market position.
- Strong Financial Performance: Alphabet's revenue is projected to exceed $400 billion in 2025, reflecting a 15% year-over-year increase, while net income is expected to rise by 32% to $132.1 billion, showcasing its profitability and leadership in the AI sector.
- Significant Capital Expenditure Increase: Alphabet plans to double its capital expenditures to between $175 billion and $185 billion in 2026, indicating a strong commitment to long-term investments in AI, which is expected to further drive market expansion and technological innovation.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 331.330
Low
255.00
Averages
336.08
High
400.00
Current: 331.330
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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