The biggest beneficiary of generative artificial intelligence (AI) on Wall Street after Nvidia will be Google’s parent company, Yahoo Finance, a U.S. economic portal, reported. Although Alphabet’s self-developed AI “Geminai” is better than AI’s original open AI’s ChatGPT in some areas, the fact has yet to be reflected in its stock price, according to the analysis. Alphabet announced its own AI “Geminai” on the 7th of last month.
Demis Hersavis, CEO of DeepMind of Google, who developed AlphaGo, said at a press conference at the time, “Jeminai scored 90% in MMLU (large-scale multi-working language understanding). It is the first AI to exceed the human expert score of 89.8%.
MMLU is a method of testing whether various expertise is known at the professional level. ChatGPT-4, the latest LLM of Generative AI’s original open AI, reportedly showed an 86.4% correct answer rate in the MMLU test. Geminai outperformed the latest version of ChatGPT of open AI.
Nevertheless, Alphabet’s stock price is significantly undervalued compared to Nvidia. Alphabet’s current price-to-earnings ratio (PER) is 26. In comparison, Nvidia is around 70. &P500 companies have an average PER of 21. Alphabet is rated higher than those in the S&P 500, but significantly lower than Nvidia. Yahoo Finance said that the upside is higher than Nvidia, which has already increased a lot. Meanwhile, Nvidia soared 240 percent last year, while Alphabet rose just 58 percent.
EJ SONG
ASIA JOURNAL
