Gemini's usage rate jumps to second in the market, TD Cowen raises Google's target price to $270
TD Cowen raised the target price for Alphabet - C to $270 and maintained a "Buy" rating based on its annual survey results in the generative AI public cloud sector. Google Cloud Platform (GCP) had an awareness rate of 80% in the survey, ranking third, with 44% of respondents planning to adopt GCP in the future. The Google Gemini model has become the second most commonly used generative AI tool, with 54% of respondents selecting it as the underlying model. The market is trending towards diversified choices, with OpenAI accounting for 73%
According to the Zhitong Finance APP, TD Cowen has raised the target price for Google (GOOGL.US) from $240 to $270 and maintained a "Buy" rating. This adjustment is based on its annual survey results regarding generative AI (GenAI) in the public cloud sector.
The analysis team led by John Blackledge pointed out that although Google Cloud Platform (GCP) showed robust performance in the survey, it still lags behind market leaders Amazon AWS (awareness 94%) and Microsoft Azure (awareness 93%)—this year's survey showed its overall awareness at 80%, ranking third; the awareness among enterprise customers was the highest at 88%, while other business groups ranged from 70% to 80%.
In terms of new options among cloud service providers, GCP ranked second, with about 44% of respondents planning to adopt GCP in the future (second only to Azure), and 38% of respondents expected to replace their current providers with GCP (up from 36% last year). Among those willing to replace existing suppliers, GCP ranked third at 38%, below Azure (72%) and AWS (67%).
In the field of generative AI, Google's Gemini model has become the second most commonly used large language model (LLM) provider, with 54% of respondents choosing it as the underlying model for GenAI tools, an increase from 50% in the 2024 survey. OpenAI holds a 73% share, still first but down from 82% last year, reflecting a trend towards diversified choices in the market.
Notably, Anthropic, which was not included in last year's survey, ranked third this time with a 35% share, while Meta Platforms (META.US) secured fourth place with its Llama model at 24%
