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Business News/ Markets / Stock Markets/  Alphabet soars as Wall Street cheers arrival of AI model Gemini
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Alphabet soars as Wall Street cheers arrival of AI model Gemini

The release of Alphabet Inc.'s Gemini AI model on Thursday caused a spike in the company's shares, allaying concerns about its position in the very competitive artificial intelligence market, according to a report by Bloomberg.

 Alphabet Inc saw a surge in shares on Thursday as the company's Gemini AI model was released, allaying worries about its standing in the fiercely competitive artificial intelligence market, said Bloomberg in its report. REUTERS/Dado Ruvic/Illustration/File Photo (REUTERS)Premium
Alphabet Inc saw a surge in shares on Thursday as the company's Gemini AI model was released, allaying worries about its standing in the fiercely competitive artificial intelligence market, said Bloomberg in its report. REUTERS/Dado Ruvic/Illustration/File Photo (REUTERS)

 Alphabet Inc saw a surge in shares on Thursday as the company's Gemini AI model was released, allaying worries about its standing in the fiercely competitive artificial intelligence market, said Bloomberg in its report.

With a 5.3% gain, the stock saw its largest one-day percentage gain since July. The surge increased the market capitalisation of the stock by more than $87 billion. The Nasdaq 100 Index gained 46% in 2023, while Microsoft Corp., a significant AI rival due to its investment in OpenAI, saw a 55% increase in shares. In comparison, shares have increased by 55% in 2023, according to Bloomberg report.

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Even though the parent company of Google has seen gains year to date, its shares have fluctuated over the last few months, indicating that investors are keeping a close eye on any indications of strength or weakness in the AI space. A poor report on Alphabet's cloud division, which has been drawing business from AI startups, in October caused the stock to plummet sharply. In contrast, Microsoft's results were viewed favourably given the strong demand for AI, according to the report.

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This year, the optimism surrounding AI has played a major role in driving share prices, particularly for megacap technology and internet stocks. The chipmaker Nvidia Corp. has more than tripled in size due to strong demand for its AI processing chips, joining Alphabet and Microsoft in this regard. The stock of Advanced Micro Devices Inc., which this week unveiled a new line of AI chips, has almost doubled in value.

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Wall Street rebounded on Thursday, ending its first three-day losing run since Halloween, according to an AP report.

The S&P 500 increased by 0.8%, or 36.25 points, to 4,585.59. The Nasdaq composite surged 193.28, or 1.4%, to 14,339.99, while the Dow Jones Industrial Average added 62.95, or 0.2%, to 36,117.38.

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Published: 08 Dec 2023, 08:59 AM IST
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