Tech giants such as Alphabet (NASDAQ:GOOGL)-owned Google and Amazon (NASDAQ:AMZN) in the Generative AI (Artificial Intelligence) space are competing to woo OpenAI’s clients. This comes as OpenAI, known for creating the most powerful AI chatbot, ChatGPT, grapples with internal challenges. As these companies are attracting OpenAI’s customers, Wall Street maintains a bullish outlook on the shares of GOOGL and AMZN.
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Per a Wall Street Journal report, Google’s sales team initiated a targeted effort to encourage businesses to transition from OpenAI to its platform. As part of its campaign, Google matches its pricing with OpenAI, extends cloud credits to customers utilizing its AI software, and facilitates a seamless transition to its platform. On the other hand, Amazon emphasizes that customers can select from various AI systems rather than committing exclusively to OpenAI or a single vendor, in light of recent turmoil at OpenAI.
While these technology giants encourage businesses to broaden their AI vendor base, OpenAI’s representative pointed to a social media post where customers willingly opted to remain with the company. This could help alleviate concerns regarding uncertainties about its future. Whether OpenAI’s rivals can impact its market share and attract customers is still a story unfolding.
In the meantime, let’s examine the Street’s recommendation for Google and Amazon stocks.
What is the Prediction for Alphabet Stock?
Analysts maintain an optimistic outlook on Google stock. The company’s ongoing investment in AI to bolster its AI capabilities and capitalize on growing demand bodes well for growth. Further, the integration of AI into its products, particularly Cloud, and a rebound in the advertising market support its bull case.
Alphabet stock carries a Strong Buy consensus rating, reflecting 27 Buy and six Hold recommendations. The stock has gained about 57% year-to-date. Meanwhile, the average Google stock price target of $153.52 implies 10.85% upside potential from current levels.
Is Amazon Stock Expected to Go Up?
Amazon stock has increased by nearly 75% year-to-date. Moreover, analysts see further upside potential in its shares. Its investments in the three macro layers of AI, strategic partnerships, and focus on the integration of generative AI capabilities for AWS customers provide a solid foundation for growth. At the same time, its strength in the advertising business and leadership in the e-commerce space augur well for growth.
AMZN stock has 41 Buy recommendations for a Strong Buy consensus rating. Further, the average AMZN stock price target of $175.51 implies 19.63% upside potential from current levels.
Bottom Line
Both Google and Amazon are investing heavily to capitalize on the solid demand for AI, and analysts are cheering that. This is reflected in analysts’ Strong Buy consensus ratings on GOOGL and AMZN stock. But whether these tech giants will be able to dent OpenAI’s market share is uncertain at this point.
