Google-parent Alphabet can soon touch $2 trillion market value, AI to fuel company's growth

Google's parent company, Alphabet, is on the path to reclaiming its position towards a potential record $2 trillion market value, a milestone previously achieved only by Microsoft Corp., Apple Inc., and Nvidia Corp. in the US. The resurgence comes after a recent dip in share prices last month, attributed to concerns that the tech giant was lagging behind in artificial intelligence (AI), as reported by Bloomberg.

Investors are growing increasingly bullish on Alphabet's AI strategy following a string of setbacks that caused its shares to plummet. Leveraging this week's cloud event as a platform to demonstrate the enterprise readiness of its AI model, despite recent hiccups in its consumer-facing tools, attention is now shifting towards this month's earnings and an upcoming developer's conference in May.

In early February this year, Google's parent company had announced the introduction of subscription plans for its upcoming advanced chatbot, Bard Advance, during its fourth-quarter earnings call. CEO Sundar Pichai highlighted the company's strategy to meet the increasing demand for premium AI services, which he said the new subscription plans would address.

While Alphabet's path to monetising AI remains uncertain, its stock's relatively modest valuation continues to appeal to many investors on Wall Street. Talking to Bloomberg, Sylvia Jablonski, CEO of Defiance ETFs, expressed optimism about Google's potential in generative AI products, foreseeing significant growth opportunities for the stock.

Additionally, Alphabet stands to benefit from its development of generative AI tools, which can enhance the precision of advertisements and drive increased revenue from ad spend. Despite setbacks, such as the missteps with the Gemini product, Alphabet showcased its resilience during its cloud computing conference in Las Vegas this week. The company demonstrated how Gemini can be utilised for various purposes, including creating advertisements, mitigating cybersecurity threats, and producing short videos and podcasts. Furthermore, Google unveiled a new chip specifically designed to handle AI workloads.