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How Google's Early Bet On AI Has Catapulted The Stock To Record Highs And A 24% Rise For 2024

Published 24/05/2024, 15:17
How Google's Early Bet On AI Has Catapulted The Stock To Record Highs And A 24% Rise For 2024

Benzinga - by Zaheer Anwari, Benzinga Contributor.

  • Google has been an early adopter of AI technology, integrating it into core products such as Google Docs, Gmail, and its advertising platforms, which are significant sources of revenue.
  • At the Google I/O developer conference, CEO Sundar Pichai emphasized the critical role of AI by introducing AI-generated answers in Google's search engine.
  • Google's stock recently broke through major resistance, indicating the start of another long-term bullish trend.
Long before AI chatbots like ChatGPT gained public attention, Alphabet Inc Class A (NASDAQ: GOOGL) was already using AI in key areas like Google Docs, Gmail, and its advertising platforms, which are major revenue sources.

Their early adoption highlights their leadership in AI. At the Google I/O developer conference, CEO Sundar Pichai highlighted AI's importance by announcing AI-generated answers in Google’s search engine. This aims to improve user interaction with more precise and relevant search results.

A key element of Google's AI is its advertising tool, Performance Max. Widely adopted across industries, it aims to optimize advertising efficiency through AI. However, it faces criticism for its lack of control and detailed reporting.

Despite its advancements, the company has faced challenges with AI development, including criticism over the accuracy and appropriateness of its AI-generated content. Nonetheless, their strong position in AI is supported by its proprietary infrastructure and access to extensive data sets.

Google's leading position in the AI race is evident in its stock performance. In 2023, their stock rose by 96%, recovering from a previous 44% decline. This recovery started after finding support at $90, following a year-long correction.

The stock's ability to move higher while staying above the daily 20 simple moving average is seen as a sign of a healthy upward trend.

Recently, on April 1st, the stock broke out from a significant consolidation area, rising above $151, which could signal the start of a long-term bull trend. This creates an attractive opportunity for investors to benefit from the positive momentum in Google’s stock performance.

After the closing bell on Thursday, May 23, the stock closed at $173.55, trading down by 1.60%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

© 2024 Benzinga does not provide investment advice. All rights reserved.

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