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Made By Google Event Prompts Jefferies to Name Alphabet ‘Best Choice’ for Consumer AI

Posted on by darion

Key conclusions

  • Alphabet-owned Google on Tuesday unveiled its Pixel 9 line and showed how it is integrating artificial intelligence (AI) into its Gemini devices at its Made By Google event.
  • Jefferies analysts called Alphabet a “top pick” for consumer AI after the event, saying the integration with Gemini gives the company a chance to gain market share in smartphones.
  • Google has announced the launch of devices with integrated artificial intelligence ahead of Apple’s planned September launch of the iPhone 16.

After Google unveiled its Pixel 9 line and showed off how it is integrating artificial intelligence (AI) into its devices with Gemini at its Made By Google launch event on Tuesday, Jefferies analysts called Alphabet (GOOGL) a “gem built for AI.”

Analysts have named Alphabet a “top pick” for consumer AI, alongside Meta (META), which has benefited from early AI advances, while pressure is mounting on Apple (AAPL) to deliver its highly anticipated AI-enabled iPhone 16.

Google AI integration takes center stage

The analysts said that while Google unveiled several new products, including the Pixel 9 lineup, Pixel Watch 3, and Pixel Buds Pro 2, “it was the introduction of Gemini to the devices that took center stage.”

Google has started rolling out Gemini Live, its English-language AI assistant, to Gemini Advanced subscribers on Android phones, and plans to expand it to Apple’s iOS and other languages.

Jefferies analysts write that while Google may face an “uphill battle” to capture market share in smartphones and mobile devices, the Gemini integration offers “an opportunity to close that gap.”

The implementation could help Google compete in the AI ​​race

Google’s new AI-integrated devices and Gemini Live platform could help strengthen the company’s position as big tech companies compete for position in the consumer AI race.

With Gemini Live and the new devices, Google can more effectively compete with Apple as the company prepares for the upcoming launch of the iPhone 16.

Apple is expected to release a new generation of iPhone in September, and with it updates to Apple Intelligence, as expectations grow about the iPhone maker’s AI capabilities.

Alphabet shares fell 3.2% to $158.99 in afternoon trading Wednesday. The stock has gained nearly 14% since the beginning of the year.