HomeMarket NewsThe Resilience of Alphabet: A Potential Game Changer with Apple?

The Resilience of Alphabet: A Potential Game Changer with Apple?

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Alphabet’s Soaring Stock in Response to Apple Talks

Investors experienced a thrill this morning with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock, as reports emerged of ongoing discussions between the tech giant and Apple (NASDAQ: AAPL) regarding the integration of Alphabet’s Gemini AI chatbot on the iPhone. While no official deal has been reached, the mere possibility of this collaboration sent Alphabet’s shares soaring by up to 7.8%, inching towards a record high, with Apple also enjoying a 3% increase.

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Alphabet and Apple Partnership: A Turning Point?

Today’s surge in Alphabet’s market cap by over $100 billion highlights the significant impact of the unconfirmed report. Bloomberg stated that talks are underway for Apple to potentially license Gemini for upcoming iPhone software updates, possibly to be revealed in June at Apple’s annual developer conference. Despite having discussions with OpenAI for their generative AI model, the outcome of Apple’s negotiations with Alphabet remains uncertain.

While this partnership’s future hangs in the balance, a collaboration with Apple could mark a pivotal moment for Alphabet, which has faced hurdles with its AI endeavors, notably with the underwhelming Bard and subsequent scrutiny of Gemini. Notably, Alphabet has already formed a partnership with Samsung to incorporate its generative AI on the latest Galaxy devices, demonstrating a growing acceptance of chatbot technology.

Although AI advancements may not immediately spike revenue for Alphabet, the value lies in establishing enduring partnerships. Stay tuned for developments between these tech juggernauts, as they are likely to sway Alphabet’s stock trajectory in the days ahead.

Before taking the plunge into Alphabet stocks, potential investors should consider that while this news is promising, the Motley Fool Stock Advisor team has identified 10 other stocks poised to deliver substantial returns in the foreseeable future, excluding Alphabet. The Stock Advisor service has outperformed the S&P 500 index significantly since 2002, offering a roadmap to financial success with regular analyst insights and new stock recommendations each month.

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Suzanne Frey, a member of The Motley Fool’s board of directors and an executive at Alphabet, has no position in the mentioned stocks. The Motley Fool holds positions in and recommends Alphabet and Apple. The Motley Fool abides by a strict disclosure policy.

The opinions expressed in this article are solely those of the author and do not reflect the views of Nasdaq, Inc.

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