Some Investors Have Dropped Alphabet Stock Over the Delayed Release of Its Gemini 3.5 Pro Model. Here Are 900 Million Reasons Why They're Wrong.
Investors have dropped Alphabet stock due to the delayed release of its Gemini 3.5 Pro model. However, the company has more than doubled its Gemini users in just one year, reaching 900 million monthly users in May.
Intelligence analysis by Llama
Alphabet's Gemini user growth and AI sales have made significant progress, but the delayed release of its Gemini 3.5 Pro model has caused investors to sell off the stock. The company is making huge strides to stay competitive in AI processors.
Imagine you have a super powerful computer that can do lots of things for you, like search the internet, play games, and even talk to you like a friend. That's basically what Alphabet's Gemini is. It's a special kind of computer brain that can help make lots of things happen on the internet. Alphabet is making lots of progress with Gemini, and it's getting more and more powerful all the time.
Analysis
A $60B Vote of Confidence
Alphabet's Gemini user growth has been nothing short of impressive. In just one year, the company has more than doubled its Gemini users, reaching 900 million monthly users in May. This is a significant achievement, especially considering the company's software and services are everywhere. Billions of people use its Search function, AI Mode searches, YouTube, Android mobile operating system, and Google Workspace, all of which implement Gemini in some form. OpenAI and Anthropic don't have the same reach across so many services, and they helped Alphabet turn users of these services into Gemini users.
Why Cursor?
Investors have grown accustomed to the steady release of new, more capable AI models and don't like to see models delayed. However, Alphabet's software and services are a major advantage in the AI market. The company has achieved those impressive user gains because its software and services are everywhere. This is a long-term advantage for Alphabet as the company packages Gemini as part of its broader software subscriptions. And there's already evidence that Alphabet is successful at turning artificial intelligence (AI) users into paying customers. The company generated $1.2 billion in sales from Gemini last year.
The Road Ahead
Alphabet is making huge strides to stay competitive in AI processors. The company is designing a chip called Frozen v2 that incorporates some of its Gemini architecture directly onto the processor, providing six to 10 times more AI tokens used per unit of power than the company's current Tensor Processing Unit (TPU) processors. In short, the Frozen processor could make Gemini processing far more efficient. The chip isn't expected to launch until 2028, but it's another indication of how much effort Alphabet is putting into staying competitive in AI processors.
Key points
- Alphabet's Gemini user growth has been impressive, with more than 900 million monthly users in May.
- The company's software and services are a major advantage in the AI market.
- Alphabet is making huge strides to stay competitive in AI processors.
- The company generated $1.2 billion in sales from Gemini last year.
- The Frozen processor could make Gemini processing far more efficient.
If Alphabet continues to make progress with Gemini, it could lead to even more users and sales, making the stock a good buy. The company's software and services are everywhere, and it's already successful at turning AI users into paying customers.
If the delayed release of the Gemini 3.5 Pro model continues to cause investors to sell off the stock, it could lead to a decline in value. However, the company's software and services are a major advantage in the AI market, and it's already making huge strides to stay competitive in AI processors.
Market signals
- Gold Escalation drives safe-haven demand for gold, per the article's framing of investor reaction.
AI-generated analysis of potential market relevance. Not financial advice.
