JPMorgan praised Google for its leading AI technology, far exceeding the speed of previous innovation,

Source: Wall Street News

Google is undergoing a "radical reinvention of search", which may be the biggest transformation since the birth of search engines.

After Google I/O 2025 Developer Conference, J.P. Morgan highly praised Google's leading position in the field of artificial intelligence (AI), especially regarding the Gemini model.

On the 22nd, according to information from Zhuifeng Trading Desk, the team of Doug Anmuth, an analyst at J.P. Morgan, believes that Google is launching products at an unprecedented pace. Google's full - stack AI strategy encompasses world - class research, custom AI hardware, a powerful global infrastructure, leading foundation models, as well as developer tools and platforms.

J.P. Morgan particularly emphasized "AI Mode", considering it a major advancement by Google in the search field. Google's foundation models also lead in terms of efficiency and cost, and Google has started to consider commercializing AI technology.

J.P. Morgan maintains an "overweight" rating on Google's stock, with a target price of $195. As of the close on Wednesday, Google's stock price rose 2.87% to $170, with a 14.71% upside potential to the target price.

Google's Innovation Speeds Up: Faster Deployment of AI Products

J.P. Morgan believes that, judging from the information conveyed at Google I/O Conference, Google is launching products at an unprecedented speed.

Especially in terms of foundation models, the Gemini model is in a leading position. AI Mode has integrated Gemini into the search function and incorporated the agent capabilities of Astra, Mariner, and Deep Research. The launch of AI Mode in search is only one year later than the AI Overview.

J.P. Morgan said that Google has adopted a full - stack AI approach, possessing world - class research, custom AI hardware, a powerful global infrastructure, leading foundation models, as well as developer tools/platforms. This gives Google's foundation models an edge in terms of efficiency and cost.

Data shows that currently, Google's products and APIs process 480 trillion tokens per month, which is 50 times the 9.7 trillion tokens per month in 2024. Meanwhile, the number of developers using the Gemini API has exceeded 7 million, a five - fold increase since the last I/O Conference.

"Comprehensive Reinvention of Search": AI Mode Revolutionizes the Search Experience

J.P. Morgan particularly emphasized "AI Mode", describing it as a "comprehensive reinvention of search" and "the biggest revolution since the invention of search engines".

AI Mode provides an end - to - end AI search experience, leveraging connections with Google's product suite, advanced reasoning, and multimodal capabilities to enable more complex queries (2 - 3 times longer than traditional searches), deeper personalized insights, and follow - up questions.

In addition, AI Overviews have been extended to more than 1.5 billion monthly active users, over 200 countries and regions, and more than 40 languages, becoming one of Google's most successful search product launches in the past decade. In Google's largest markets such as the United States and India, the usage of query types that display AI overviews has increased by more than 10%.

J.P. Morgan pointed out that the upcoming enhanced features include:

- In - depth research capabilities for expert - level reports

- Real - time visual interaction features of Project Astra

- Agent capabilities of Project Mariner, which can take actions and automate tasks in the browser

- Enhanced shopping features, including virtual try - ons and improved product discovery

- Greater personalization and integration with other Google apps

- Complex and customized data analysis and visualization

Commercialization and Ecosystem: Gemini Applications and Subscription Models

Google also announced new improved versions of the Gemini, Gemma, and generative media models. Within the Gemini family, Google announced upgrades to Gemini 2.5 Pro and Gemini 2.5 Flash, as well as an experimental demonstration of its new text model, Gemini Diffusion.

Notably, Gemini 2.5 Pro and Flash rank first and second respectively in LM Arena, and 2.5 Pro also leads in other leaderboards such as LaMDA and WebDev Arena.

For developers, Google announced Gemma 3n, an open - source multimodal model capable of running on devices. In terms of generative media models, Google announced the newly improved image and video generation models, Imagen 4 and Veo 3.

J.P. Morgan said that Google demonstrated its commercialization intentions at the I/O Conference. At this conference, Google announced several enhancements to Gemini applications, including:

- Gemini Live, which offers camera and screen - sharing capabilities, as well as integration with other Google apps in the coming weeks

- Google's latest image and video generation models, Imagen 4 and Veo 3

- In - depth research with personal PDF and image upload capabilities

- Canvas with improved coding powered by Gemini 2.5 Pro

- Gemini - Chrome integration, which can clarify or summarize information on any web page

Meanwhile, Google launched a new premium subscription tier, Google AI Ultra ($249.99 per month), providing access to Google's most powerful models and advanced features. The $19.99 - per - month Advanced tier has been upgraded to Google AI Pro, with better features but the same price.

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