Technology

Alphabet trading at highest since August as Wall Street cheers Google’s A.I. plans

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Alphabet CEO Sundar Pichai delivers the keynote address at the Google I/O developers conference at Shoreline Amphitheatre on May 10, 2023 in Mountain View, California. 
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Shares of Alphabet are trading at their highest level since August on the heels of Google’s artificial intelligence announcements at its developer conference Wednesday.

The stock was up about 5% and trading near $118 per share as of Thursday morning. It last traded above that price in August last year.

At its I/O event, Alphabet-owned Google announced it would bring AI features to its signature search product to turn complex queries into simple answers by combining results from multiple sources.

Google also said its suite of workplace tools like Google Docs would soon let users create new documents and fill out spreadsheets with AI. The company also said it would make its Bard AI chatbot more widely available and that it would soon have the ability to respond in different languages and images.

Analysts seemed pleased that Google’s announcements will keep it at the forefront of the AI race and generate returns for the company.

“We remain bullish and view I/O as a clearing event that will help erode the heavily debated ‘AI overhang’…and narrow GOOGL’s current valuation gap vs. peers,” Morgan Stanley analyst Brian Nowak wrote.

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