Alphabet (GOOG) Faces "Innovator's Dilemma" as GenAI Chatbots Gain Traction

Alphabet Inc. (NASDAQ:GOOG) ranks among the best performing S&P 500 stocks in the last 3 months. On September 3, TD Cowen increased its price target for Alphabet Inc. (NASDAQ:GOOG) to $240 from $220 and retained a Buy rating on the company. The firm noted Google’s ability to respond to challenges from AI chatbots like ChatGPT as a result of its “massive scale & tech DNA,” backed up by proprietary survey data that demonstrates strong consumer adoption of AI Overviews and AI Mode features.

Despite competition from OpenAI and others, the firm expressed confidence that Alphabet can continue to lead the search market while making progress in generative AI, though it noted that Google Search confronts a “innovator’s dilemma” with the rise of GenAI chatbots.

According to TD Cowen, Alphabet Inc. (NASDAQ:GOOG) is “an established and leading AI company at its core” and has “similar or better GenAI technology vs competing upstarts.”

Alphabet Inc. (NASDAQ:GOOG) is a leading tech giant with a diverse portfolio, offering services such as Google Ads, Google Chrome, Google Cloud, Search, and YouTube.

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Disclosure: None. This article is originally published at Insider Monkey.