AI's big models "car accident" dragging down Alphabet (GOOGL.US) stock price, fund manager: investors have a good buying opportunity

Concerns about the failure of Alphabet's artificial intelligence model, Gemini, have severely weighed down the stock price of this tech giant. However, a fund manager at Boston Partners believes this has created a "golden opportunity" for investors. David Cohen, who manages Boston Partners' large-cap value strategy investment portfolio, stated, "For an exceptional company, Alphabet has a very low price-to-earnings ratio. We believe that the company's advantage in artificial intelligence is not reflected in the stock price." Gemini, the artificial intelligence model under Alphabet, has been seen as a major setback for this tech company known for its technological prowess due to generating incorrect images. Gemini is reported to be Alphabet's largest and most powerful multimodal artificial intelligence model. Previously, the product faced criticism for generating mostly images of people of color and even generating images of African and Asian descent when asked to generate images of American founders, the Pope, or WWII German soldiers. As a result, Alphabet has temporarily suspended Gemini's image generation function. The failure of Gemini has raised concerns that Alphabet may be falling behind in the field of artificial intelligence. However, David Cohen believes that Alphabet's strength lies in the fact that its stock price does not reflect its capabilities in artificial intelligence. He thinks that the issues with Gemini can be relatively easily resolved, and the decline in Alphabet's stock price provides a rare opportunity for fund managers to seek undervalued stocks with significant growth potential. Data shows that Alphabet's expected P/E ratio is 18 times, which is 35% lower than the average expected P/E ratio of the "big seven" tech stocks in the US. Regarding the failure of Gemini, David Cohen stated, "We believe this has served as a wake-up call for Alphabet's executives. The technical repair of Gemini seems not particularly costly or difficult. The long-term potential of Alphabet in the field of artificial intelligence remains very strong." Alphabet is typically seen as a growth stock and is not commonly found in so-called value investment portfolios. However, David Cohen emphasized, "Do not be quick to classify all large tech stocks as purely growth stocks." As of January 31, Alphabet was the fourth largest holding in the Robeco BP Large Cap US Equities Fund managed by David Cohen. Data shows that the fund has returned nearly 17% in the past year, while the benchmark Russell 1000 Value Index has increased by 10% over the past year. The fund's major holdings also include JPMorgan Chase, Walmart, and Berkshire Hathaway.