From Nasdaq: 2024-05-28 16:39:08

Opera Limited (NASDAQ: OPRA) saw a 5.5% rally in its stock on Tuesday. Despite hefty spending on artificial intelligence, the company is trading at just 8.6 times earnings, making it a bargain valuation. The rise in stock may be attributed to Opera’s collaboration with Google’s Gemini, a large language model.

In a recent press release, Opera announced a partnership with Google Cloud to integrate Gemini into its AI browser, Aria. Aria will offer features like text-to-image and text-to-audio response powered by Gemini. Opera’s 304 million monthly active users make it an attractive collaboration opportunity for Alphabet.

With Opera competing against Google Chrome, their collaboration for AI advancements demonstrates a win-win scenario. While initial concerns were raised about Opera’s AI spending, experts suggest leaning into the AI revolution is better than falling behind. At a bargain valuation, Opera appears to be a good investment choice.

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Read more at Nasdaq: Why Opera Limited Rallied Today