The Future of Google Cloud: Insights from Cloud Next Conference
Key Takeaways
- Google is set to hold its Cloud Next conference Tuesday through Thursday, with a keynote address by Google Cloud CEO Thomas Kurian at 12 p.m. ET Tuesday.
- The event could bring new details about Google’s partnerships and other developments related to artificial intelligence.
- Google could also offer investors insights into how its cloud business could grow, analysts noted.
Alphabet’s Google is gearing up for its recurring Cloud Next conference, scheduled to take place from Tuesday through Thursday. The tech giant is expected to provide crucial updates on how it is leveraging artificial intelligence (AI) technology in its cloud business. Google Cloud CEO Thomas Kurian will deliver a keynote address for the event at 12 p.m. ET on Tuesday.
Analysts at Bank of America anticipate that the conference could spark enthusiasm for Google’s AI efforts and offer investors new insights into its partnerships and growth within the cloud business.
Potential Sentiment Boost Surrounding Google’s AI Efforts
Investor enthusiasm for Google’s AI capabilities could receive a significant boost from the event, according to Bank of America analysts. The proximity of Cloud Next 2024 to the previous year’s event in 2023 suggests potential advancements with Gemini LLM or other AI products that Google is eager to showcase.
The analysts predict that Google will highlight how its large language model (LLM) capabilities can benefit its enterprise customers in the cloud. Additionally, there may be announcements regarding updates on its AI model Gemini.
Bank of America believes that positive commentary on advances in AI infrastructure, Gemini’s capabilities compared to competitive LLMs, or traction with AI customers could help alleviate some of the AI-related concerns surrounding the stock.
More Details on Google Cloud AI Partnerships
Several AI leaders, including Nvidia and Amazon-backed Anthropic, are set to speak at the conference as Google Cloud partners. This presents an opportunity for insights into Google’s ongoing AI-related partnerships or potential new partnership announcements.
Google Cloud has a longstanding relationship with Nvidia, with some Google AI tools running on Nvidia chips. Representatives from Nvidia will discuss the partnership’s role in Google’s generative AI offerings at the conference.
Bank of America analysts suggest that Google might update investors on how graphics processing unit (GPU) capabilities have influenced its AI technology. Additionally, speakers from Anthropic could shed light on how their partnership accelerates AI innovation. Anthropic’s Claude 3 model is available on Google Cloud’s AI platform, Vertex AI.
Possible AI Product Launches
The Cloud Next conference could bring forth new product launches and AI-related announcements. Bank of America analysts speculate that Google might introduce new Gemini capabilities, additional Vertex AI use cases, and further integration of AI into Google workspaces. Enhanced cybersecurity capabilities or announcements regarding new regions where Google’s AI technology is available may also be on the agenda.
Updates on Google Cloud Growth
Bank of America analysts foresee the conference highlighting growth opportunities for Google Cloud and its positive impact on Alphabet’s stock price. They project that Google Cloud revenue could reach $58 billion in 2026, up from $41 billion in 2024, with improved margins and increased profits.
With unique AI assets and advanced LLM models, Google Cloud has the potential to differentiate its cloud offering, gain market share, and enhance street sentiment. Bank of America maintains a “buy” rating for Alphabet with a price target of $173.
As Alphabet shares closed 1.5% higher at $154.85 ahead of the event, investors are eagerly anticipating the insights and developments that will emerge from the Cloud Next conference.
Read the original article on Investopedia.