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Google’s stock is soaring to all time highs, in a surprise comeback, as the company’s newest Quantum chip coupled with a new Gemini announcement, re-energized the markets.
Why care: ridiculed earlier for being too slow to act , despite having innovated the core of the technology powering GenAI, the shift in narrative favoring Google now is powerful to watch.
Two things brought us here:
- Despite all the positing, Google’s core businesses continue to thrive in the AI era. Last quarter, they grew revenues by 15% YoY, making $90 billion.
- They’re viewed as clear leaders in tech of the future. Quantum computing, Self-driving, and respectably competitive in AI.
Not to mention, they own their GenAI models, are building their own chips, have frontier research with projects like deep mind, and unrivaled consumer franchises with Android and other.
Big picture: despite the “disruptive” potential that AI holds, a lot of the value has accrued to existing market participants. The Mag 7 names are up near 75% year to date.
Zoom out: one of the biggest challenges to the Google stock was the legal hurdles it had to fight under the Biden admin. Some of those problems are expected to go away under the softer Trump admin.
