Source: Wall Street Journal.
JPMorgan pointed out that Google is releasing products at an unprecedented speed, and its full-stack AI strategy enhances the efficiency and cost-effectiveness of its foundational models. Google Search Engine AI Mode is the "biggest revolution since the invention of the search engine", and furthermore, Google is planning to commercialize AI technology through models like Gemini and Gemma.
$Alphabet-A (GOOGL.US)$ /$Alphabet-C (GOOG.US)$ Experiencing a "thorough revolution in search," this may be the biggest change since the birth of Search Engine.
After the Google I/O 2025 developer conference, JPMorgan highly praised Google's leading position in the field of artificial intelligence (AI), especially regarding the Gemini model.
On the 22nd, news from the Chase Trade Desk indicated that JPMorgan Analyst Doug Anmuth's team believes Google is releasing products at an unprecedented speed. Google's full-stack AI strategy encompasses world-class research, customized AI hardware, robust global infrastructure, leading foundational models, and developer tools and platforms.
JPMorgan particularly emphasized the "AI Mode," considering it a significant advancement that Google has made in the search field. Google's foundational models also lead in efficiency and cost, and Google has begun to consider commercializing AI technology.
JPMorgan maintains a "Shareholding" rating on Alphabet-A stocks, with a target price of $195. At the opening, Alphabet-A stock price rose, and so far, $Alphabet-A (GOOGL.US)$ the stock price has increased by 4.56, reaching $176.24, leaving room for further growth towards the target price.
Google's innovation accelerates: the rollout of AI products is speeding up.
JPMorgan believes that based on the information conveyed from the Google I/O conference, Google is launching products at unprecedented speed.
Especially in terms of foundational models, the Gemini model is leading. AI Mode has integrated Gemini into search functions and included it in the capabilities of Astra, Mariner, and Deep Research. The launch of AI Mode in search came just a year after the AI Overview.
JPMorgan stated that Google has adopted a full-stack AI approach, with world-class research, custom AI hardware, robust global infrastructure, leading foundational models, and developer tools/platforms. This gives Google's foundational models greater advantages in efficiency and cost.
Data shows that currently, Google's products and APIs handle 480 trillion tokens per month, which is 50 times the 9.7 trillion tokens/month projected for 2024. Meanwhile, the number of developers using the Gemini API has exceeded 7 million, growing fivefold since the last I/O conference.
"A complete overhaul of search": AI Mode radically changes the search experience.
JPMorgan particularly emphasized "AI Mode", describing it as "a complete overhaul of search" and "the biggest revolution since the invention of the search engine."
AI Mode offers an end-to-end AI search experience, leveraging connections with Google's product suite, advanced reasoning, and multimodal capabilities for more complex queries (increasing search length by 2-3 times compared to traditional search), deeper personalized insights, and follow-up questions.
In addition, AI Overviews has expanded to over 1.5 billion monthly active users, in more than 200 countries and regions, and more than 40 languages, becoming one of Google's most successful search product releases in the past decade. In Google's largest markets, such as the United States and India, the usage of query types that display AI overviews has increased by more than 10%.
JPMorgan points out that the upcoming enhanced features include:
In-depth research capabilities for expert-level reports.
Real-time visual interactive capabilities for Project Astra.
Agent capabilities for Project Mariner, which can take actions and automate tasks in the browser.
Enhanced shopping features, including virtual try-on and improved product discovery.
Greater personalization and integration with other Google applications.
Complex and customized data analysis and visualization.
Commercialization and ecosystem: Gemini application and subscription model.
Google also announced new improved versions of Gemini, Gemma, and generative media models. Within the Gemini family, Google announced upgrades to Gemini 2.5 Pro and Gemini 2.5 Flash, as well as an experimental demonstration of its new text model, Gemini Diffusion.
Notably, Gemini 2.5 Pro and Flash ranked first and second in the LM Arena, with 2.5 Pro also leading in other rankings such as LaMDA and WebDev Arena.
For developers, Google announced Gemma 3n, an open-source multimodal model capable of running on devices. In the realm of generative media models, Google announced the newly improved image and video generation models, Imagen 4 and Veo 3.
JPMorgan stated that Google showcased its commercialization intentions at the I/O conference. During this conference, Google announced several enhancements to the Gemini application, including:
Gemini Live, which offers camera and screen sharing features, as well as integration with other Google applications in the coming weeks.
Google's latest image and video generation models, Imagen 4 and Veo 3.
In-depth research with personal PDF and image upload capabilities.
Equipped with the Canvas using the improved encoding of Gemini 2.5 Pro.
Gemini-Chrome integration can clarify or summarize information on any webpage.
At the same time, Google launched a new premium subscription tier, Google AI Ultra ($249.99/month), which provides access to Google's most powerful models and advanced features. The $19.99/month Advanced tier has been upgraded to Google AI Pro, offering better functionality at the same price.
Editor/jayden
