2026 AI Market Predictions: Alphabet's Gemini to Surpass ChatGPT
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy GOOG?
Source: Fool
- AI Market Competition: In 2026, Alphabet's Gemini is expected to achieve market share parity with OpenAI's ChatGPT, which saw a 19-point drop to 68% market share over the past year, while Gemini gained 13 points to reach 18%, indicating strong momentum in generative AI.
- Solar Industry Outlook: Experts predict the solar industry will outperform the market in 2026, with Tyler Crowe asserting that solar is the short-term solution for AI power needs, as its deployment speed surpasses that of natural gas turbines, potentially leading to significant growth in the coming years.
- Housing Market Recovery: Matt Frankel forecasts a 30% rise in average homebuilder stocks in 2026, driven by increased demand for new homes and anticipated rate cuts, which could attract more buyers and stimulate industry recovery.
- Battery Storage Demand: As solar energy becomes more prevalent, battery storage systems will be crucial; Tyler Crowe noted that in 2024, battery systems were the fourth largest source of added grid capacity, highlighting their importance in mitigating solar energy's intermittency.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 302.820
Low
255.00
Averages
336.08
High
400.00
Current: 302.820
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Dominance: Companies like Amazon, Microsoft, Google, Meta, and Oracle control 70% of the AI market, highlighting their critical role in driving the commercialization of AI technologies, which may influence investment directions across the industry.
- ROI Concerns: Despite the ongoing increase in infrastructure spending by hyperscalers, concerns about return on investment (ROI) remain a focal point, with analysts noting that the lack of clear business models could negatively impact future investment decisions.
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- Speed of Technological Revolution: Russell compares the AI revolution to the Industrial Revolution but asserts it is ten times faster and larger, emphasizing its critical role across Google's businesses, including Search, Cloud, and Waymo, indicating a profound transformation in business models.
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- Accelerating Technological Progress: Hassabis noted that the pace of advancements in AI systems is rapidly increasing, with foundational models becoming more capable, and he anticipates that 2026 will mark a pivotal moment for AGI, potentially arriving before 2030.
- Importance of Safety Regulations: Despite his optimism about AGI's prospects, Hassabis stressed the need for careful navigation and called for the establishment of scientific regulatory frameworks to ensure that advanced AI systems serve human goals and mitigate potential risks.
- Necessity of Global Cooperation: Hassabis believes that the responsibility for shaping the future of AI should extend beyond technologists to include governments, scientists, artists, and philosophers, highlighting the importance of interdisciplinary collaboration to ensure the safe development of AI.
See More
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