BofA says the Google I/O keynote’s slate of AI announcements underscore growing Gemini integration across the Google ecosystem. Given third-party benchmarks and slowing LLM innovation, the firm thinks “the catch-up phase for Google’s LLM capabilities is coming to an end” and that the company is “moving to offense” by going full AI Mode in search. Google is moving forward from AI testing and integration in search results with AI Overviews to offering full AI Mode general availability in search, notes BofA, which sees this as Google’s “Reels moment” as it is taking on a growing and well-funded competitor in Open AI by integrating a directly competitive product. The firm has a Buy rating and $200 price target on shares of Google parent Alphabet (GOOG) (GOOGL).
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