In a potential game-changing move for the tech industry, Alphabet, Google’s parent company, experienced a significant 4.6% surge in their stock following a Bloomberg report hinting at a potential partnership with Apple. The collaboration would involve integrating AI technology into the iPhone, similar to their previous partnership for search technology. However, this new venture could face regulatory scrutiny due to the dominance of both companies in the tech sector.
This partnership could potentially help Apple catch up in the AI race with industry leaders such as Microsoft. While both Google and Apple continue to develop their AI technologies, a partnership could prove beneficial for both companies in advancing their capabilities in this competitive field. Apple may eventually transition to developing its own AI technology to replace Google’s, much like their recent shift to Apple Silicon from Intel in their Mac devices.
If this potential Google-Apple partnership in AI does come to fruition, it could lead to a significant valuation expansion for Alphabet, similar to the stock multiple seen in Microsoft. Analysts currently rate Alphabet stock as a Strong Buy with an average price target of $165.09, while Apple stock is rated as a Moderate Buy with an average price target of $204.86.
Although the reported Google-Apple partnership has not been confirmed yet, the market reaction suggests the possibility of positive outcomes for both companies in the ever-evolving field of generative AI. Stay tuned for more updates as the tech giants navigate this potential collaboration.
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