Alphabet (GOOGL) is strengthening its business empire beyond search with the launch of a company focused on software for powering robots and emerging technologies such as artificial intelligence. Intrinsic is the new firm that according to Reuters, will operate under the tech giant’s futuristic business unit. The firm comes from the tech giant’s ‘moonshot factory’ X.
Intrinsic is currently working on software used to power industrial robots. Most of these robots have been used to develop products from solar panels to cars, among others. The unit came into being as the tech giant sought to expand its business empire beyond search and advertising. (See Alphabet stock charts on TipRanks)
Intrinsic CEO Tan White stated, “We’re now ready to become an independent Alphabet company, leaving the moonshot factory’s rapid prototyping environment to focus on developing our product and validating our technology.”
Recently, Credit Suisse analyst Stephen Ju reiterated a Buy rating on Alphabet but raised his price target to $3,350 from $2,755, implying 25.93% upside potential to current levels. According to the analyst, all advertising sectors are poised to exceed the tech giant’s expectations in the second quarter, which should benefit the company given its global footprint.
Consensus among analysts is a Strong Buy based on 26 Buys and 2 Holds. The average Google price target of $2,834.74 implies 6.56% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in GOOGL is currently Negative. The cumulative change in holdings across all 41 funds that were active in the last quarter was a decrease of 76.7K shares.
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