Joseph Carlson: Google’s Dominance Is Over

Earnings season is winding down. Big tech companies saved the market from potentially selling off after their multi-month rally. Chipmakers have been leading the way, with many players reporting double-digit wins the day after reporting earnings.

However, some tech companies aren’t hitting it out of the park right now. Investors need to get more selective in their tech plays, especially as the AI rollout will lead to clear winners and losers.

For instance, Alphabet (GOOG), the parent of Google, is a big-cap tech play that’s out of favor with the market. Despite having the dominant internet search engine, the company has been behind other tech players for the AI space.

Google’s attempt at AI, named Bard, failed to take off with the market. The Bard demo was an embarrassment, as the AI couldn’t even provide factually accurate answers.

Next, the company’s AI Gemini was also not quite ready for launch. It later came out the best demo video for the AI was faked.

With other big-cap tech companies pulling ahead in the AI race, Google may start to lose its dominance.

While Google will likely still lead the search engine space, losing the AI space may mean lower total returns going forward.

Plus, with a slowdown in the cloud space, other companies in the space, such as Microsoft (MSFT) may pull ahead.

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