"The impact of generative artificial intelligence on the internet search advertising business of Google remains a key issue for investors. In search, new competition from OpenAI's ChatGPT, Perplexity and others has forced Google to overhaul its search results. ChatGPT delivers answers to search queries, while Google's business model has been based on providing web links. There's also been speculation OpenAI could roll out its own browser, taking on Google's Chrome."
"Further, Google recently introduced new Gemini AI model integration across its Chrome browser for all U.S. desktop users. Chrome now features native Gemini access via a dedicated button, allowing users to analyze information and content without switching windows. Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format."
Alphabet shares fell amid speculation over a possible OpenAI announcement, declining more than 3% to 248.53 and trading below the intraday high of 256 set Sept. 19. The stock has gained about 30% in 2025 and the company surpassed a $3 trillion valuation in September. Generative AI competition from ChatGPT, Perplexity and others has forced Google to overhaul search results and raises questions about future search ad revenue growth. Google integrated Gemini into Chrome for U.S. desktop users and deployed AI Overviews in mid-2024, with conversational summaries often appearing above links. Third-quarter earnings are due Oct. 29, and IBD ratings show a Relative Strength of 90 and an Accumulation/Distribution grade of B+.
Read at Investor's Business Daily
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