Alphabet (NASDAQ:GOOGL) Inc Class C (NASDAQ:GOOG)CFO Ruth Porat's recent commentary on AI suggests "products are coming and costs are manageable."
The analyst, who has a Buy rating and $125 price target on Alphabet, added that there are no signs of Google search share loss despite ChatGPT's growth.
Recent daily traffic data indicates that ChatGPT growth continues, but w/w trends are moderating with recent daily Web visitor high of 48.5mn up only 100k w/w.
Google's February market share "actually increased 50bps m/m to 93.4%," and they expect little to no impact from the ChatGPT ramp on Google search revenues in the first quarter.
Google is building on a decade of "extraordinary" AI work and will be launching a number of LLM-based products in the next weeks and months.