Google Cloud outlook appears rosy on gen AI offerings: Wedbush

Google Cloud (NASDAQ:GOOG)(NASDAQ:GOOGL) outlined a range of artificial intelligence agent use cases during its Google Gemini at Work event on Tuesday.

“We come away from the keynote with increased conviction in the strength of Google’s enterprise generative AI offerings and their emerging contribution to Google Cloud growth,” said Wedbush analysts, led by Scott Devitt, in an investor note. “Google is actively working with enterprise customers to develop AI agents across a variety of use cases.”

Some of the enterprises highlighted include Snap (SNAP), Volkswagen (OTCPK:VWAGY), Warner Bros. Discovery (WBD) and Best Buy (BBY).

The six primary uses of AI agents employed by enterprises include customer agents, employee agents, code agents, data agents, security agents and creative agents.

Google reported more than 2M developers are building with Google’s GenAI solutions, and it’s seen 36x growth in Gemini API usage on Vertix AI since the beginning of the year.

“Google is well positioned to drive adoption of generative AI tools given its AI-optimized compute infrastructure supported by custom silicon, and unmatched breadth of data to develop and train AI models across text, images, and video,” Devitt noted.

Wedbush maintains its Outperform rating on Google and a 12-month price target of $205.