Key takeaways
- Google is scheduled to hold its Cloud Next conference Tuesday through Thursday, with a keynote from Google Cloud CEO Thomas Kurian at 12 p.m. ET on Tuesday.
- The event could bring new details about Google’s partnerships and other developments related to artificial intelligence.
- Google could also offer investors a glimpse into how its cloud business could grow, analysts noted.
The alphabet (GOOGLE) Google is expected to hold its recurring Cloud Next conference Tuesday through Thursday, and the tech giant is expected to provide key updates on how it leverages artificial intelligence (AI) technology in its cloud business. Google Cloud CEO Thomas Kurian will deliver a keynote speech for the event at 12 p.m. ET on Tuesday.
Ahead of the conference, Bank of America analysts wrote that the event could boost enthusiasm for Google’s AI efforts and provide investors with new details about its partnerships and the growth of its cloud business.
Potential increase in sentiment around Google’s AI efforts
Investor enthusiasm for Google’s AI capabilities could be boosted by the event, according to analysts at Bank of America, noting that Cloud Next 2024 takes place just 7.5 months after Cloud Next takes place in 2023, potentially suggesting “some progress with Gemini LLM or other AI products” that the company is keen to highlight.
Analysts said they expected Google to highlight how its extended language model (LLM) capabilities can help its cloud. corporate customers. The company could also announce updates to its AI model Gemini.
Bank of America said “positive feedback on progress in AI infrastructure, Gemini’s capabilities versus competing LLMs, or traction with AI customers (following a strong fourth quarter versus estimates ) could address some of the AI-related excess inventory.”
More details on Google Cloud AI partnerships
Several AI leaders including Nvidia (NVDA) And Backed by Amazon (AMZN) Anthropic will be among the Google Cloud partners speaking at the event, which could provide insight into Google’s ongoing AI-related partnerships or announcements of new partnerships.
Google Cloud and Nvidia have a long-standing relationship, with some Google AI tools running on Nvidia chips. Nvidia representatives will join the conference to discuss the role the partnership plays in Google’s development. Generative AI (GenAI) offerings.
Bank of America analysts said Google could inform investors about how graphics processing unit (GPU) capabilities influenced its AI technology.
Anthropic speakers could also explain how the partnership between the Amazon-backed AI company and Google Cloud is accelerating AI innovation. Anthropic Claude 3 The model is available on Google Cloud’s AI platform, Vertex AI.
Possible AI product launches
The event could bring new product launches and AI-related announcements, with Bank of America analysts suggesting Google could announce new Gemini features and additional Vertex AI use cases, as well as an integration additional AI in Google Workspaces.
The event could also include Google introducing “enhanced cybersecurity capabilities” or announcing new regions where its AI technology is available.
Google Cloud Growth Updates
Bank of America analysts said the conference could highlight Google Cloud’s growth opportunities and its value as a “positive driver” for Alphabet’s stock price, citing increasing scale, acceleration of demand for AI and an increase in margins. earnings per share (EPS)among others.
The company projects that Google Cloud revenue could reach $58 billion in 2026, up from $41 billion in 2024, improving margins and increasing profits.
“With unique AI assets, including proprietary infrastructure and an advanced LLM model, we believe Google Cloud has the opportunity to differentiate its cloud offering, improving market share and street sentiment,” they wrote analysts.
Bank of America maintained its “buy” rating for the alphabet and price target of $173. Alphabet shares closed up 1.5% at $154.85 on Monday ahead of the event. The stock has gained about 12% since the start of the year.
