This article first appeared on GuruFocus.
Bank of America said Alphabet (NASDAQ:GOOGL) is likely to use its upcoming Google I/O developer conference to expand on its artificial intelligence strategy, with new Gemini updates expected to take center stage.
Analyst Justin Post said Alphabet could introduce a next-generation Gemini large language model featuring stronger reasoning, coding, multimodal and long-context capabilities. The company may also roll out faster and lower-cost Flash variants alongside expanded video, image and audio generation tools.
Bank of America said Alphabet is also expected to deepen Gemini integration across products including Chrome, search and hardware devices. Post added that the company could unveil more autonomous software agents through tools such as Jules, potentially adding automated functions across its ecosystem.
The brokerage said investor expectations heading into Google I/O appear elevated, which could pressure Alphabet shares if the conference lacks a major surprise. Still, Bank of America said longer-term investors may focus on Alphabet’s growing AI ecosystem and its position in agentic AI services.
