Google Hits All Time High With USD 2 Trillion In Sight

🌟🌟🌟$Alphabet(GOOG)$  $Alphabet(GOOGL)$  hits its all time high on Tuesday as it rides the AI wave to a new valuation of USD 1.95 Trillion.   This puts Google within 3% of reaching a USD 2 Trillion market capitalisation.   Only $Apple(AAPL)$  $Microsoft(MSFT)$  and $NVIDIA Corp(NVDA)$  are in that league.

Google reached an All Time High of USD 159.89 per share and closed at a record closing price of USD 158.14, gaining 1.3% amid modest broad market losses today. 

Google is now up 13% year todate and has a 77% jump dating back to December 2022.  This rally is spurred by record profits due to resilient advertising spending.  The markets are also optimistic about Google's huge potential growth in AI.

Google has just announced on Tuesday details of a new version of its data centre AI chips as well as an Arm based central process unit (CPU) called Axion via Google Cloud.  Google said that it has superior performance to x86 chips and general purpose Arm chips in the cloud.

Google 's tensor processing units (TPUs) are one of the few viable alternatives to the advanced AI chips made by Nvidia, though developers can only access them through Google' s Cloud Platform and not buy them directly.

According to Mark Lohmeyer, Google Cloud's Vice President and General Manager of compute and learning infrastructure, Axion is built on open foundations but customers using Arm anywhere can  easily adopt Axion without re-architecting or rewriting their apps.

Rival cloud operators such as Amazon and Microsoft have built Arm CPUs as a way of differentiating the computing services they offer.  Google has built other custom chips for YouTube, AI and its smartphones. 

What a turnaround for Google today compared to when it lost USD 90 billion in market capitalisation in February after investor's confidence was rocked due to woke images of its Gemini chatbot.  According to Google Deep Mind CEO Demis Hassabis, the Gemini Woke AI image generator would be back online within the next 2 weeks. 

Wall Street Analysts are bullish on Google with a Buy rating, Target price of USD 166.  This implies a USD 2.1 Trillion market cap for Google according to FactSet. 

Oppenheimer analyst Jason Helfstein has set a USD 185 target price citing optimism about Google's ability to thrive as its Generative AI applications take hold in its search engine. 

I am long term investor of Google and have seen its share price dropped below USD 100 in 2022.  I am so happy I held on to my conviction that Google will not only survive but thrive.  Investing is about being patient and holding a quality stock like Google long term. 

As Charlie Munger once said, "The Big Money is not in the Buying and Selling but in the Waiting. "

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