Google Shares Soars 5% After Company Announces Gemini AI Model

08 December 2023

2 Mins Read

Google Shares Soars 5% After Announces Gemini AI Model

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Google experienced a 5% surge in shares following the announcement of its latest artificial intelligence model, Gemini, positioning itself in competition with OpenAI, Microsoft, and Meta.

This marked the stock’s most significant gain since August 29, prompting positive reactions from Wells Fargo’s trading desk. The announcement, according to Wells Fargo, effectively addressed concerns surrounding Google’s AI capabilities, signaling the company’s continued strength in the field.

However, questions loom about how Google intends to monetize Gemini in the long term, a sentiment echoed by Wells Fargo. Despite uncertainties, Gemini is set to be licensed to customers through Google Cloud later this month, potentially influencing various products.

Bank of America analysts view the competitive and well-branded Gemini as a positive move for Alphabet, easing concerns about Google’s AI capabilities. They anticipate potential benefits for consumer search activity and Cloud enterprise sales, expressing confidence in Google’s robust AI capabilities.

While Google executives claim Gemini surpasses OpenAI’s GPT-3.5, comparisons with OpenAI’s GPT-4 Turbo remain undisclosed. The announcement underscores the prospect of further monetization through AI for Google.

Microsoft’s recent launch of Copilot, powered by OpenAI’s ChatGPT, is cited as an example of AI monetization. JPMorgan analysts, while acknowledging Wall Street’s subdued response, express encouragement at Google’s progress in the evolving AI landscape. However, concerns persist over uncertainties surrounding the monetization path, especially in Search.

In the eyes of KeyBanc analysts, Gemini represents the apex of Google’s AI efforts in 2023. They emphasize the need for patience in assessing its impact on growth and profitability, believing that 2024 will be more about tangible results than headline announcements. The analysts view Gemini’s integration into core products like Search as an ongoing process, indicating the transformative potential in advertiser, consumer, developer, and enterprise behaviors.

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Shahnawaz Alam

Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.