Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG)-owned Google unveiled a series of AI (artificial intelligence)-powered features across its portfolio of products, including Workspace Collaboration, Infrastructure, Data and AI, and Cybersecurity solutions. What stood out was the pricing of its AI tools for businesses, which matched Microsoft’s (NASDAQ:MSFT) offerings for enterprises.
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Google introduced Duet AI earlier this year, a productivity booster for its cloud-based collaborative Workspace offering. Through Duet AI, the company embedded generative AI across all the Workspace apps, including Gmail. The Duet AI will enable users to create text, images, and presentations and analyze data faster in Sheets. Moreover, it can capture notes and will be able to join the meeting on an individual’s behalf.
The company will charge businesses $30 per month for each user to add the Duet AI to Gmail and other productivity apps. This matches the pricing of Microsoft’s generative AI tools for work. In July, Microsoft said it would charge $30 per user per month to commercial customers for Microsoft 365 Copilot. The Microsoft 365 Copilot leverages generative AI to boost its work productivity tools.
Although both technology giants are strengthening their AI offerings to onboard as many enterprises as possible, it remains to be seen how the competition shapes up in this space and who captures a bigger market share. Meanwhile, let’s look at what the Street recommends for GOOGL and MSFT stocks.
What is the Future of Alphabet Stock?
Wall Street analysts are upbeat about the prospects of Alphabet stock. The company continues to benefit from the strength of the Search business. In addition, the expected recovery in ad spending, momentum in its Cloud business, AI-led innovation, and customers’ growing interest in its AI-optimized infrastructure and reduction of costs will drive revenue and earnings and support the uptrend in its share price.
Given these positives, Alphabet stock has a Strong Buy consensus rating based on 31 Buy and five Hold recommendations. Analysts’ average price target of $150.67 implies 11.96% upside potential from current levels.
Is Microsoft Stock a Good Buy Right Now?
Microsoft has been gaining popularity for integrating AI into its products. At the same time, the strength of the Cloud business is positive. Further, the company is accelerating investment in cloud infrastructure to capitalize on AI demand, which will drive its financials.
Microsoft stock has received 31 Buy, two Hold, and one Sell recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $391.88 implies 19.33% upside potential from current levels.
