HSBC: ChatGPT Atlas browser does not pose a threat to Alphabet Inc. Class C, maintains "buy" rating on Alphabet (GOOGL.US).

HSBC Bank said that OpenAI's ChatGPT Atlas browser with agent capabilities is a competitor to Alphabet Inc. Class C (GOOGL.US) Chrome, but its functionality is not unique, as Chrome emphasized similar features in a blog post in September. HSBC maintains a "buy" rating on Alphabet Inc. Class C parent company Alphabet and sets a target price of $285. Analysts say that OpenAI CEO Sam Altman has pointed out that the way people use the internet has changed. This new browser allows users to chat with it, thus "eliminating the complexity and clutter of years past." OpenAI believes this is the "next iteration of the internet." Analysts point out three key features of the ChatGPT Atlas browser - chat functionality is always available; browser memory: as usage increases, the browser's understanding of the user deepens; agent capability - ChatGPT can now perform tasks within the browser, such as booking restaurants, editing documents, and emails. However, analysts add that the browser's functionality is not unique. Atlas is shown to be able to search users' browsing history, summarize web content, and edit documents (especially in Gmail and Alphabet Inc. Class C documents). Analysts state: "For us, the most impressive part of this webcast was its agent capabilities. For example, during the demonstration, the browser was able to act as an agent and order missing ingredients for a recipe. According to a blog post from Alphabet Inc. Class C on September 18, 2025, Chrome's Gemini can also perform similar tasks." Analysts suggest that, given that Gemini was released four months later than ChatGPT but subsequently captured market share successfully, Alphabet is likely to be willing to release a second product first and then capture market share. Analysts add that over the past 12 months, Gemini has almost doubled its market share in the generative AI market, while OpenAI's market share has correspondingly decreased, indicating this situation. However, Alphabet Inc. Class C seems to have developed these capabilities, so analysts suggest that perhaps the release of Atlas will only raise questions about the timeline for the broader release of DeepMind's "Ahoy" program under Alphabet Inc. Class C. Analysts say that Atlas is a direct competitor to Chrome. However, they note that ChatGPT currently has around 800 million users, while Chrome has nearly 3 billion users. Analysts "expect Alphabet Inc. Class C to compete for search market share by keeping users in the Chrome browser with its demonstrated capabilities." Alphabet's earnings report is scheduled to be released on October 29, and analysts expect many questions about its competitive browser at that time. However, analysts point out that with its DeepMind and strong financial resources, Alphabet is still believed to have the ability to withstand market shocks. According to analysts, Alphabet's next potential catalyst will be the third-quarter earnings report. Analysts state: "This latest statement from OpenAI does not change our investment thesis on Alphabet."