BofA analysts maintained a Buy rating and $128 price target on Alphabet (NASDAQ:GOOGL) in a note Monday, stating AI is not just hype, and their user survey suggests strong LLM adoption.
They said that ChatGPT usage is strong among heavy Internet users, while the top LLM use cases are to search for info and generate ideas.
"We conducted a user survey on conversational AI tools of more than 1,100 U.S. Internet users aged 18-55 to measure user AI chatbot activity and intentions," explained the analysts.
"Our survey, which is biased toward heavy Internet users, indicated that: 1) 59% use ChatGPT, 51% use Bing, and 34% use Bard; 2) 30% use Bing and Bard daily (vs. ChatGPT at 23%) and 40% use each several times a week; 3) If only allowed to use one AI chatbot, 49% would choose ChatGPT, followed by Bing at 26% and Bard at 21%."
The analysts added that a "strong 67% have or plan to download ChatGPT app on their mobile phone," while 45% indicated they will use Google search more due to the integration of conversational AI tools, with 19% indicating they will use Google search less due to usage of ChatGPT and Bing.