Wedbush: Next-generation AI products boost cloud business prospects, maintains Google's "outperform market" rating
Wedbush maintains an "outperform" rating on Alphabet (Google) with a target price of $205. Google showcased various AI agent use cases at the Google Gemini at Work event. Analyst Scott Devitt stated that Google's generative AI products will drive growth in its cloud business. Enterprise customers such as Snap, Volkswagen, etc., are actively using these AI agents for six major purposes including customers, employees, code, etc. Google's GenAI solution has been used by over 2 million developers, and Gemini API usage has increased 36 times since the beginning of the year
According to CNBC, Google Cloud (GOOGL.US) outlined a series of artificial intelligence agent use cases at the Google Gemini at Work event held on Tuesday. Following the event, Wedbush maintained its "outperform" rating on Google with a 12-month target price of $205. Wedbush analysts led by Scott Devitt stated in an investor report, "Following the keynote, we are more confident in Google's strength in enterprise generative AI products and their new contributions to Google Cloud growth. Google is actively collaborating with enterprise customers to develop various use cases for AI agents."
Key enterprises of focus include Snap (SNAP.US), Volkswagen, Warner Bros. Discovery (WBD.US), and Best Buy (BBY.US). The six main use cases for enterprises using AI agents include customer agents, employee agents, code agents, data agents, security agents, and creative agents.
Google reported that over 2 million developers are using Google's GenAI solutions, and usage of the Gemini API on verx AI has grown 36 times since the beginning of this year.
Devitt noted, "Google is well-positioned to drive adoption of generative AI tools as it has AI-optimized computing infrastructure supported by custom chips and unparalleled breadth of data to develop and train AI models across text, images, and videos."