Google: An Undeniable Leader In AI


  • Google has rebounded after initial AI missteps, but it is no longer a deep discount at its current price.
  • The biggest threat to Google is generative AI technology from OpenAI and Microsoft, which could replace valuable searches on Google.
  • Google’s Search and Cloud segments are reporting accelerating growth, indicating that AI is boosting revenue or at least not impacting the business negatively.
  • The stock is still attractively valued at only 17x adjusted EPS targets, especially compared to other tech giants.

Digital search icon on future tech background. Search Engine Evolution. Futuristic search icon and abstract chart in world of technological progress and innovation. CGI 3D render

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The stock market has spent the last year predicting the demise of Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL), aka Google, due to the generative AI threat from OpenAI. Google has long been a leading investor in AI

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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