Google parent Alphabet nears $2T mcap, driven by AI advancements
What's the story
Alphabet, the parent company of Google, is nearing a market capitalization of $2 trillion.
This significant financial milestone has been largely driven by the company's advancements in generative artificial intelligence.
Over the past year, Alphabet's shares have surged more than 51%, with an increase of over 15% this year alone.
At the time of writing, Alphabet's market cap stood at $1.99 trillion.
Tech innovations
Google showcases new AI chip and cloud developments
Google has recently unveiled its latest developments in cloud and artificial intelligence technology.
Among these innovations is a new AI chip, named the Cloud TPU v5p, designed to compete with semiconductor leader NVIDIA.
Additionally, Google has introduced Axion, its first Arm-based CPU to rival Microsoft and Amazon. This chip will be used to power data centers.
According to Google CEO Sundar Pichai, the new AI chip can process large language models nearly three times faster than its predecessor.
Investor sentiment
Alphabet's AI advancements boost investor confidence
Alphabet's advancements in artificial intelligence have played a significant role in the surge of its stock value.
This has brought the company closer to the $2 trillion market cap milestone, previously achieved only by Microsoft, Apple, and NVIDIA in the US.
Despite some challenges with Alphabet's AI strategy, investor confidence in the company's future prospects continues to grow.
Revenue growth
Google's generative AI tools aim to boost ad revenues
Alphabet is developing its own generative AI tools designed to deliver more accurate ads and increase ad spend revenues.
Despite facing criticism over inaccurate historical depictions of race, the company's Gemini product was recently showcased at a cloud computing conference in Las Vegas.
The tool has been demonstrated as an effective means for creating advertisements and combating cybersecurity threats.