- Google is ready for 'battle' in the AI-services space, and the stock could rise by another 21%, says Bank of America.
- Microsoft and Baidu have joined the race to capitalize off the growing hunt for AI tools set off by ChatGPT.
Google is set to be a formidable opponent in the AI space as companies race to roll out their own versions of the popular ChatGPT chatbot, says Bank of America which expects a double-digit surge in shares of the technology heavyweight.
"GOOG [is] well prepared for AI battle with years of investment," BofA research analyst Justin Post said in a note to clients this week.
OpenAI's ChatGPT has jumpstarted an AI-investing frenzy as the tool features a human-like ability to run virtual tasks like answering investors' questions to just passing graduate-level exams.
Google introduced Bard on Monday, with CEO Sundar Pichai describing it as "an experimental conversational AI service" - which sounds much like ChatGPT, which launched in November. China's Baidu is pushing into the space as is Microsoft, which on Tuesday outlined an overhaul of its search engine made in collaboration with OpenAI.
BofA sees the potential for Alphabet shares to climb to $119, implying their price could eventually rise by 21% from Monday's close at $102.90.
"Per industry experts … Google may have more data to access than ChatGPT, Google has extensive computing infrastructure to build on and, of course, Google search has a large distribution advantage with iOS and Android," said Post.
"While a new wave of AI competition has arrived, we think Google is well prepared with years of investment in the technology. Buy," he wrote.
Alphabet stock was up 3.5% at $106.56 during Tuesday afternoon trade.
Google boss Pichai said Bard has been opened up to "trusted testers," and that the service it will be arriving to the public in the coming weeks.
Baidu shares soared Tuesday after the Chinese search engine operator said it is preparing to roll out its ChatGPT competitor "ERNIE Bot" in March.