"Alphabet Inc. is rapidly becoming seen as the leader in almost every major part of the artificial intelligence industry. Its earnings after the close Wednesday will help confirm whether that reputation is justified and whether it's enough to keep lifting shares. It's quite a turnaround for Google's parent, which less than a year ago was thought to be falling behind in the AI race. Today it has a highly touted AI model, cutting-edge semiconductors, a fast growing cloud-computing business."
"And that's before you get to its nearly $300 billion a year digital advertising business. All of this has pushed Alphabet's share price to an all-time high and within striking distance of overtaking Nvidia Corp. as the largest stock in the world. At the same time, it has lifted Alphabet's valuation to its highest level in 18 years. So naturally expectations are through the roof going into the print."
"Alphabet has been so strong on such a sustained basis that there is risk for disappointment and profit taking, even on strong earnings, said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, which has about $11 billion in assets and owns the stock. It could be that the whisper number investors want to see to keep the stock moving up is unattainable."
Alphabet has emerged as a leader across major AI domains, supported by a notable AI model, advanced semiconductors and rapid cloud-computing growth. The company’s dominant market position and a new AI tool have affected related sectors such as video game stocks. Nearly $300 billion a year in digital advertising underpins financial strength and has driven the share price to an all-time high and a valuation not seen in 18 years. Market capitalization is near $4.1 trillion, close to Nvidia, and elevated expectations ahead of earnings raise the risk of disappointment and profit-taking despite recent outperformance.
Read at www.mercurynews.com
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