Alphabet

Alphabet’s Google is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Google is preparing a new AI chip called Axion, which is the type of chip commonly used in big data centers, and can handle everything from YouTube advertising to big data analysis. Axion adds to Google’s efforts to develop new computing resources, beginning with specialized chips used for AI work as it tries to deal with rising artificial-intelligence costs. Dow Jones & Co. owns Factiva.

Alphabet shares surged to an all-time high after The Wall Street Journal reported Google is making more of its own semiconductors, preparing a new chip that can handle everything from YouTube advertising to big data analysis as the company tries to combat rising artificial-intelligence costs. The Technology Select Sector SPDR ETF ended up 0.5%.

Wedbush’s Dan Ives thinks that a culmination of the AI revolution and improving ad spending will make the March quarter “one to watch” for companies in the technology sector. What Happened: Ives expressed optimism about the prospects of big technology companies in the March 2024 quarter. “I think it’s going to be one for the ages in terms of digital advertising,” Ives explained, underscoring that Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is his top pick for this reason. Ives thinks that the spending environment in the tech industry is improving. This will help us see the next part of the “AI revolution,” according to Ives. “Big Tech earnings should be robust for 1Q and an important moment to put fuel into this tech rally with earnings/growth moving higher,” Ives said in an interview with CNBC. Ives has been consistent in his belief that the next phase of the AI revolution is the demand of AI and cloud

Alphabet (GOOG, GOOGL) has been speaking to its advisers about possibly making an offer for HubSpot (HUBS), Reuters reported Thursday, citing people familiar with the matter. The technology giant had a meeting with Morgan Stanley’s (MS) investment bankers recently to discuss how much it should offer and whether a transaction would be cleared by regulators, the report said, citing the sources. There is no guarantee that Alphabet will submit a proposal to HubSpot and there is no certainty it will do so, the report added. A HubSpot spokesperson told MT Newswires in an emailed response that the company “does not comment on rumors or speculation”, while Alphabet and Morgan Stanley did not respond. Alphabet’s stock was slightly down, while HubSpot’s shares rose 2% in recent Friday premarket activity.

Alphabet’s (GOOG) reported interest in HubSpot (HUBS) is yet another reminder that the provider of cloud-based customer relationship management platform is “an asset to own,” Macquarie Capital said in a note e-mailed Friday. Reuters recently reported that the parent company of online search giant Google was considering a bid for HubSpot. “The mere mention of interest (in HubSpot) should remind investors of the reasons we have been and continue to be long-term buyers of this high-quality, best-in-class asset,” Macquarie analysts, including Frederick Havemeyer, said. With HubSpot’s current market cap likely at more than $33 billion, the “sheer size” of a potential deal is expected to warrant at least a second request from the US Department of Justice, the analysts said, citing sources familiar with regulatory norms. HubSpot shares were up more than 3% in recent trading, while Alphabet was up 1.6%.

Alphabet’s (GOOG, GOOGL) Waymo autonomous driving subsidiary and Uber Technologies’ (UBER) Uber Eats said Wednesday they have launched delivery service in Phoenix. Uber shares were up 1.5% in recent trading, while Alphabet shares down 0.3%.

Alphabet’s (GOOG) Google is planning to add fees for use of new features powered by generative artificial intelligence, the Financial Times reported Thursday, citing people familiar with the matter. Google is studying options such as adding AI-powered search features to its existing premium subscription services, the report said. The company’s engineers are currently working on the technology needed for the service, but executives have yet to greenlight its launch, the FT reported.

By Angela Palumbo Alphabet’s Google Search faces competitive risks from other generative artificial intelligence players, but one Wedbush analyst says investor concern is exaggerated. Scott Devitt moved Alphabet to the Wedbush Best Ideas List and increased the stock’s price target to $175 from $160. Google has been the number one search engine for decades. The concern among investors is that its dominance might be affected by the introduction of generative AI search engines such as ChatGPT — which offer an alternative, in-depth option. However, Devitt wrote in a research note Friday that he believes “the perceived structural risks to Google Search are overstated” and he continues “to view Alphabet as a net beneficiary of generative AI.” To compete with other AI companies — such as Microsoft’s Bing, which uses OpenAI’s GPT software — Alphabet introduced its Gemini suite of generative AI tools to the standard Google search engine. “Alphabet’s competitive

Alphabet (GOOG, GOOGL) remains a “clear” beneficiary of generative artificial intelligence amid the persistence of longer-term debates related to the technology, Wedbush Securities said in a note Friday. “We think Google benefits from structural search and generative-AI advantages that insulate the company from competitors,” Wedbush said. The firm noted that Alphabet shares have trailed mega cap peers Amazon.com (AMZN) and Microsoft (MSFT) and the broader Nasdaq index year-to-date following Q4 results and the recent controversy related to historically inaccurate images generated by its AI model Gemini. “We think the setup has become more attractive in recent weeks with a reversal in sentiment emerging,” Wedbush said. “Specifically, we are encouraged by comments made during the company’s public appearance at an investor conference… regarding generative AI and Google Search, in addition to media reports earlier this week indicating that Google and Apple (AAPL) are in negotiations to integrate Gemini in upcoming iPhone

Alphabet’s (GOOG) Google said Tuesday it’s launching generative artificial intelligence tools targeting health care. “We’re bringing new capabilities to our models with the hope of making generative AI more helpful to health care organizations and people’s health,” Yossi Matias, Google vice president, engineering and research, said in a blog post. The company said it initially launched its AI model MedLM for chest X-ray classification projects. “We’re starting with chest x-rays because they are critical in detecting lung and heart conditions,” Matias said. MedLM for Chest X-ray is available to certain testers in an experimental preview on Google Cloud. The company is “researching how a version of the Gemini model, fine-tuned for the medical domain, can unlock new capabilities for advanced reasoning, understanding a high volume of context, and processing multiple modalities,” according to the blog post. Fitbit and Google Research units teamed up to build a personalized health AI model

Wells Fargo analyst Ken Gawrelski maintains Alphabet (NASDAQ:GOOGL) with a Equal-Weight and raises the price target from $141 to $144.

Alphabet is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Apple is in talks with Google parent Alphabet over licensing its “Gemini” artificial intelligence training model for use in iPhones. Google stock rose on the news, which follows controversy over its Gemini-powered generative AI chatbot. Apple would use the Gemini generative AI models to power new features coming to iPhone software, according to reports. Dow Jones & Co. owns Factiva.