The AI race is becoming more competitive, with tech giants Alphabet (GOOGL) and Anthropic continuing to grow quickly. According to investment firm BNP Paribas (BNPQY), Anthropic’s Claude more than doubled its daily average users from February to March, while Google’s Gemini saw a steady increase in usage. And even though ChatGPT is still the market leader, it actually lost some web traffic and mobile app share during March.
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Forget margin or options. Here's how the pros trade AMZNLooking at the numbers more closely, Gemini’s share of website visits increased to 28% in March from 26.2% in February, while its average daily users rose to 16.5% from 15.1%. In comparison, Claude grew even faster, with website visits jumping to 6.6% from 3.6% and daily users increasing to 1.8% from 0.8%. Because of this, BNP analysts noted that while ChatGPT is still in the lead, it is no longer pulling further ahead like before. However, the battle is not just about users but also about infrastructure and long-term growth.
Indeed, Google is expanding its AI capabilities through a deal with Broadcom (AVGO) to build 3.5GW of capacity for Anthropic, which could add tens of billions of dollars to Google’s backlog. Meanwhile, Amazon (AMZN) is strengthening its position through AWS, with Uber Technologies (UBER) increasing its use of Amazon’s Graviton4 and Trainium3 chips. Amazon CEO Andy Jassy also said that AWS AI-related annual recurring revenue has reached $15 billion. On top of that, Meta (META) is gaining traction, as the release of its Muse Spark AI model has led to a surge in app downloads.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 25 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $381.79 per share implies 20% upside potential.
