Alphabet Class A: Robotics AI Ambitions and Search Challenges

Alphabet Class A ( (GOOGL) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Alphabet Class A, the parent company of Google, is making significant strides in the field of robotics AI, as highlighted at the recent CVPR Conference. Analyst Colin Sebastian from Baird emphasized the potential of Google’s Gemini Robotics AI software stack, which is designed to power a variety of physical robots capable of understanding language and performing complex tasks. This development positions Google as a potential leader in the emerging robotics AI market, which is estimated to be worth over $100 billion. The Gemini Robotics platform could become a major revenue stream for Alphabet, similar to its Android and Cloud platforms.

In addition to its robotics advancements, Alphabet is facing challenges in its core search business due to the rising popularity of AI tools like OpenAI’s ChatGPT. Recent data suggests that ChatGPT is gradually reducing the number of Google searches, particularly for tasks like homework and math help. This shift poses a threat to Google’s advertising revenue, which is heavily reliant on search queries. Despite these challenges, analysts maintain a Strong Buy consensus on Alphabet’s stock, with a price target suggesting a potential upside of nearly 15%.