Tech Stocks
Investors have been fixated on the relative performance of Alphabet’s AI models when they should instead be cheering the company’s cloud potential, an analyst says
Shares of Alphabet have fallen 15% off their May highs as the company’s artificial-intelligence capabilities come under scrutiny. Yet the fixation on AI leaderboards may be missing the point, according to MoffettNathanson analyst Michael Nathanson.
High-profile departures from the company’s Google DeepMind lab, combined with a delayed Gemini 3.5 Pro model, have led many to wonder if Alphabet GOOGL GOOG is losing its cutting-edge AI capabilities. Nathanson, though, believes that Alphabet is playing a different game than competitors like OpenAI and Anthropic.
