Google's Gemini Surges to 18.2% Market Share in Generative AI in One Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
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Source: Yahoo Finance
- Market Share Surge: Google's Gemini has increased its generative AI web traffic share from 5.4% to 18.2% over the past year, indicating a rapid rise in market presence that has directly impacted OpenAI's ChatGPT, which saw its share drop from 87.2% to 68.0%, highlighting a significant shift in competitive dynamics.
- User Behavior Shift: The success of Gemini is attributed to its deep integration with platforms like Chrome, Android, and Workspace, making AI features more accessible in daily workflows, thereby enhancing user engagement and trust, which further solidifies Google's leadership in the AI sector.
- Competitive Comparison: Despite Microsoft's Copilot being embedded in Windows and Edge, its market share has only slightly decreased from 1.5% to 1.2%, underscoring the importance of product trust, as Gemini effectively converts its extensive reach into habitual usage, reflecting Google's advantage in user trust.
- Strong Stock Performance: Alphabet's Class C shares have risen 65.59% year-to-date and 60.16% over the past year, significantly outperforming the Nasdaq 100 index's gains of 22.31% and 17.86%, demonstrating strong market confidence in Google's growth potential.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 336.280
Low
255.00
Averages
336.08
High
400.00
Current: 336.280
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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