BenzingaGoogle GenAI, AI Cloud Services Drive Analyst Confidence In Long-Term Growth
Over the next three to five years, Google’s primary upside valuation driver will be its proprietary large language models (LLMs).
That’s according to Needham analyst Laura Martin, who reiterated Alphabet Inc. (NASDAQ:GOOGL), Google’s parent company, with a Buy and a $178 price target on Wednesday.
She expects GenAI to aid Google’s internal operations and increase revenue growth. Martin adds that Google Cloud will generate revenue from both LLMs and the applications built upon them.
GenAI’s LLMs must be fed millions of data points every day. Google’s search engine and YouTube platform give the Gemini LLM competitive advantages and a deep moat, she says.
Ultimately, GenAI will disrupt content creation, user behavior, and business models.
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