Google’s AI push in its search engine algorithms has made Bernstein the wealth management company downgrade the technology giant’s parent company Alphabet. Resulting in the value cut of shares by 1.5 percent that will closely mimic in the market performance over outperform results.
The reason for the market research company to downgrade the value of the internet juggernaut at the Wall Street stock exchange is the risks involved with the over-indulgence in Artificial Intelligence that might also affect the stocks of Microsoft and Nvidia, as both are following the same operational suit.
Alphabet was slow in adoption of AI. However, its vision changed from early this year, or probably after Microsoft released conversational AI chatbot ChatGPT. Suddenly, its vision gained an aggressive push that soon saw the integration of GenAI into its search results, follow-ing the footsteps of Microsoft with Bing search.
When robots start taking the human mind, there will be a sure-shot pull down in the search ad pricing. This resulted in a downgrade of buy, hold, and sell ratings and forced the tech giant witness a lowest downfall for the first time since April 2018 with only 4.655 out of 5 points.
Those in favor of the company’s well-being of stock prices predict that the downgrade phe-nomenon will be temporary as the internet search giant will be coming up with a new AI sur-prise to the world in September 2023. And it can take its relative stocks zoom past the ex-change corridor in flying colors.
