Alphabet soars as Wall Street cheers arrival of AI model Gemini
Alphabet Inc saw a surge in shares on Thursday as the company’s Gemini AI model was released, allaying worries about its standing in the fiercely competitive artificial intelligence market, said Bloomberg in its report.
With a 5.3% gain, the stock saw its largest one-day percentage gain since July. The surge increased the market capitalisation of the stock by more than $87 billion. The Nasdaq 100 Index gained 46% in 2023, while Microsoft Corp., a significant AI rival due to its investment in OpenAI, saw a 55% increase in shares. In comparison, shares have increased by 55% in 2023, according to Bloomberg report.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Also Read: 6 things that changed for the stock market over night – Gifty Nifty to Japan Q3 GDP data
Even though the parent company of Google has seen gains year to date, its shares have fluctuated over the last few months, indicating that investors are keeping a close eye on any indications of strength or weakness in the AI space. A poor report on Alphabet’s cloud division, which has been drawing business from AI startups, in October caused the stock to plummet sharply. In contrast, Microsoft’s results were viewed favourably given the strong demand for AI, according to the report.
This year, the optimism surrounding AI has played a major role in driving share prices, particularly for megacap technology and internet stocks. The chipmaker Nvidia Corp. has more than tripled in size due to strong demand for its AI processing chips, joining Alphabet and Microsoft in this regard. The stock of Advanced Micro Devices Inc., which this week unveiled a new line of AI chips, has almost doubled in value.
Also Read: Warburg Pincus divests 1.3% stake in IDFC Bank worth ₹790 crore via block deal
Wall Street rebounded on Thursday, ending its first three-day losing run since Halloween, according to an AP report.
The S&P 500 increased by 0.8%, or 36.25 points, to 4,585.59. The Nasdaq composite surged 193.28, or 1.4%, to 14,339.99, while the Dow Jones Industrial Average added 62.95, or 0.2%, to 36,117.38.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Download The Mint News App to get Daily Market Updates.
Published: 08 Dec 2023, 08:59 AM IST
