Google’s AI Growing Pains: Why Investors Should Hold Steady With GOOG Stock

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Let’s be completely honest: Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) badly fumbled its rollout of Bard, the artificial intelligence chatbot. This doesn’t mean you have to sell or avoid GOOG stock, however. We’re still assigning the stock a “B” grade because Google is the king of U.S. search engines.

Google is working to refine and improve Bard’s successor, an AI chatbot known as Gemini. Actually, there are several versions of Gemini, which Alphabet stock investors should know about. By the end of 2024, perhaps the market will forgive Alphabet for its Bard fumble and focus on Gemini’s improvements.

Gemini: What GOOG Stock Investors Need to Know

If you’re thinking about buying and holding GOOG stock, then you should at least have a basic understanding of what Gemini does. It’s Google’s answer to OpenAI’s popular AI chatbot, ChatGPT. Like ChatGPT, Gemini’s technology can respond to user’s queries on a variety of topics.

Gemini’s gen-AI models can transcribe speech into text, add captions to images and videos, and even create works of art. Thus, Gemini is “multi-modal,” meaning that it can work with images as well as text.

Plus, Google unveiled three versions of its gen-AI technology. These versions are the robust and feature-rich Gemini Ultra, the “lighter” but still powerful Gemini Pro model and Gemini Nano, which runs on mobile devices.

The three Gemini versions are all “multi-modal” and, according to a TechCrunch review, are “pretrained and fine-tuned on a variety of audio, images and videos, a large set of codebases and text in different languages.”

How Gemini stacks up against ChatGPT remains to be seen, but clearly, Alphabet and Google are swinging for the fences with its three Gemini versions.

Don’t Fret About Perceived Threats to Google Search

Even though Alphabet is still working to refine its gen-AI chatbot technology, the company remains a U.S. search-engine dominator. Advertisers continue to flock to Google Search because it’s the go-to search engine for legions of users.

Sure, there are other U.S. search engines. However, Google Search remains in the number-one position by a wide margin. Wedbush analyst Scott Devitt isn’t too worried about threats to Google’s search engine, as he feels that the “perceived structural risks to Google Search are overstated.”

In addition, Devitt views Alphabet as a “net beneficiary of generative AI.” This makes sense, as Google can add gen-AI functionalities to Google Search, YouTube and Android apps. Thus, with Alphabet’s “competitive advantages” in mind, Devitt added Alphabet stock to the Wedbush Best Ideas List.

GOOG Stock Analysis: A Buy-and-Hold Candidate to Consider

GOOG stock isn’t necessarily a must-own or a “best idea.” Nevertheless, we’re giving the stock a “B” grade and consider it a decent buy-and-hold pick. After all, there’s no denying Alphabet’s ability to generate revenue from Google Search.

As for Bard’s successor, Gemini, we’re still watching and waiting. We recommend that you should also continue to monitor for new developments with Gemini.

In time, Google’s gen-AI chatbot technology could substantially enhance the value of Alphabet and its shares. Hence, if you’re interested in doing so, feel free to add a small position in Alphabet stock to your portfolio.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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The post Google’s AI Growing Pains: Why Investors Should Hold Steady With GOOG Stock appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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