Google rolling out a catalog of artificial intelligence products delivered a nice boost to its share price.
I was expecting this at some point and after getting caught off guard by the strategic moves that Microsoft (MSFT) made, I am not surprised they rolled this out so quickly.
Alphabet, the parent company of Google, was up over 4% yesterday.
This is just the beginning of the A.I. revolution and CEO Sundar Pichai has figured out how to keep GOOGL’s share price going up.
All you need to do is keep saying “A.I.” and investors will back up the truck to load as much stock as possible.
This tactic has worked awfully well because if you strip out the stock gains related to A.I. in 2023, the Nasdaq would most likely be down this year.
Tech being as it is, only a handful of companies are able to take advantage of this structural change in the sector.
Personally, I am not so sold on OpenAI’s ChatGPT.
Of course, I can change my mind, but it hasn’t impressed me yet.
I asked a few test questions myself and one of the answers to my question about making a fortune quickly was disappointing.
ChatGPT told me I should become an Uber driver, rent out a single room in my house, and complete online surveys. It then rounded out the answer by telling me to sell my old stuff on eBay.
These are answers that I doubt many would consider ways to make fortunes.
I can see how replacing clerical white-collar jobs could be applicable with this technology, and that means a lot of jobs.
However, the jobs that require using data to make forecasts are not replaceable by A.I. simply because back-tested data can’t just be regurgitated for the future.
Some of the recent hype is nothing more than marketing chutzpah which Silicon Valley is good at.
But I do still think Google is going in the right direction and investors will coalesce around this A.I. love fest without even doing due diligence if the tech works well or not.
Google is attempting to reclaim its crown as the leader in artificial intelligence with PaLM 2, a “next-generation language model” that the company says outperforms other leading systems on some tasks.
Revealing the cutting-edge AI at its annual I/O conference, alongside a foldable Pixel phone and a new tablet, Google said it would be built in to 25 new products and features, as the company moved ahead of competitors after years of producing AI research but few products.
The most obvious way to interact with PaLM 2 will be in Google’s own chatbot, Bard, which is opening up to the general public for the first time and rolling out globally.
Utilizing PaLM 2’s multilingual capabilities, Bard is also available in Japanese and Korean, as well as English, and the company intends to support 40 languages in time.
The key question is Google able to follow through to carry the stock through a recession?
The A.I. pivot won’t get Google through alone because there is no meaningful revenue coming from A.I. yet.
I would most likely believe that Google shares will consolidate if a recession comes to pass at the end of 2023.
The job market at 3.4% has continued to be resilient and big tech has become more efficient by firing all the fake jobs with high salaries.
Even on a strongly red day, Google has still held the day mostly in the green showing readers how effective spinning the A.I. story can be. That should continue until the next big disruptor.
Buy GOOGL on the dip.
