While analysts are still trying to sort out the implications of Microsofts big Bing announcement yesterday, the stock markets are quick to respond.
Alphabet Inc. Class A shares (GOOGL) are seeing a huge decline below 100 USD, losing about 8 % at the time of writing.
Microsoft's were are up 1.4% in comparison, following a 4% increase already the day before. The boost in the stock's value can be attributed to the potential of Microsoft's cloud-computing division, Azure, in the growing market of AI technology and the huge expected impact of the new AI-powered Bing search.
Microsoft's Investment in AI Pays Off
J.P. Morgan analysts believe that Microsoft's investment in AI, including its partnership with OpenAI, could be one of the company's best investments to date. They raised their target price on Microsoft stock to $305 and maintained an Overweight rating. Additionally, Mizuho Securities analysts see broad uses for Microsoft's AI in both consumer and enterprise markets and raised their target price to $300 while keeping a Buy rating on the stock.
Ad With Wrong Chatbot-Answer Tanks Alphabet-Stock
Alphabet Inc.'s stock took a significant blow after an AI chatbot utilized by the tech giant gave an incorrect answer in a Twitter advertisement for its new service, Bard. As a result, the company's shares fell about 8% to $99.40, wiping out over $100 billion in market value.
More news about Bard shared by Google today in Paris, such as promising a launch next month with API-access for developers, did not help much either.
Not to be a ~well, actually~ jerk, and I'm sure Bard will be impressive, but for the record: JWST did not take “the very first image of a planet outside our solar system”.
— Grant Tremblay (@astrogrant) February 7, 2023
The erroneous Twitter post, which was picked up by Reuters, featured a GIF image of a user asking Bard about new discoveries from the James Webb Space Telescope (JWST). The AI-equipped service responded by saying that the telescope had taken the first-ever pictures of a planet outside of our solar system.
However, NASA reports tell a different story, as the first image of an exoplanet was actually captured by the Very Large Telescope in 2004, 19 years prior to the launch of the JWST.