Gemini LLM ‘important for Google branding and sentiment,’ says BofA

After Alphabet launched its “largest and most sophisticated” large language model, or LLM, Gemini 1.0, BofA noted that Alphabet’s stock has been under pressure at times in 2023 on concerns regarding AI capabilities and AI disruption impact on results. A well-branded LLM backed by data suggesting performance surpasses competitive models in various benchmarks can help both with consumer search activity and Cloud enterprise sales, making Gemini “important for Google branding and sentiment,” the analyst tells investors. BofA, which argues that confidence in AI Google’s capabilities and potential to benefit from a positive AI-driven tech cycle is “critical for Google’s valuation,” maintains a Buy rating and $149 price target on Alphabet shares.