This AI Stock Could Rally More if Its New Product Line Delivers on Expectations

Core Insights - The competition for AI supremacy is intensifying, with Alphabet's Gemini chatbot gaining market share against OpenAI's ChatGPT [1][2] - Alphabet's stock has already seen a rally due to Gemini's advancements, with potential for further growth as new revenue streams develop [2][12] Company Developments - Gemini 3 represents a strategic shift for Alphabet, marking its first offensive move in the AI space after years of investment [3][4] - The deployment of Gemini 3 across Google's product suite enhances its capabilities, including deep-thinking research and lifelike image generation [4][5] - Alphabet's unique AI infrastructure, powered by its Tensor Processing Unit (TPU), provides a competitive edge in scaling AI tools [5][6] Market Position - Alphabet's market share in AI chatbots has increased to an estimated 15%, positioning it as the second-largest player behind OpenAI [7] - Monthly active users for Gemini are reported at 650 million, compared to ChatGPT's 800 million weekly users, indicating significant usage across Alphabet's ecosystem [7][8] Revenue Potential - Direct revenue from Gemini is currently small relative to Alphabet's total revenue of $386 billion, but indirect revenue through integration with other products could drive growth [11][12] - Alphabet's revenue grew 15% year-over-year in constant currency last quarter, with expectations for continued growth driven by Gemini's integration into its product ecosystem [12][13]