Google’s parent company, Alphabet, has been downgraded by wealth management company Bernstein due to risks associated with its over-reliance on Artificial Intelligence (AI). This downgrade resulted in a 1.5% decrease in the value of Alphabet’s shares. Microsoft and Nvidia, who are also heavily invested in AI, may also be affected by this downgrade. Alphabet was initially slow in adopting AI, but its vision changed after Microsoft released its conversational AI chatbot, ChatGPT. The integration of GenAI into Google’s search results followed suit. However, the over-indulgence in AI may lead to a decline in search ad pricing, resulting in the downgrade of ratings for Alphabet’s stocks.
Despite the downgrade, there are predictions that this phenomenon will be temporary. It is believed that Google will unveil a new AI surprise to the world in September 2023, which could significantly boost the company’s stocks. This potential development gives hope to those who are concerned about the company’s stock prices.
Key points:
1. Alphabet, Google’s parent company, has been downgraded by Bernstein due to risks associated with its over-reliance on AI.
2. The downgrade resulted in a 1.5% decrease in the value of Alphabet’s shares.
3. Microsoft and Nvidia may also be affected by this downgrade, as they are following a similar path in AI integration.
4. Google was slow in adopting AI, but its vision changed after Microsoft released ChatGPT.
5. The over-indulgence in AI may lead to a decline in search ad pricing, resulting in the downgrade of Alphabet’s stocks.
6. Despite the downgrade, there are predictions that Google’s new AI developments in September 2023 could boost the company’s stocks.