Google tests $400 as correction risks increase

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Google tests $400 as correction risks increase

Artificial intelligence becomes the key growth engine

AI investments are already generating measurable returns: revenue from AI-enhanced search features grew 19%, while GenAI-based cloud products posted explosive growth of +800% year-over-year. Search query volumes reached all-time highs, supported by AI Overviews and AI Mode powered by Gemini 3.1. Gemini Enterprise reported a 40% quarter-over-quarter increase in paid active users, while the total number of paid subscribers across YouTube Premium, Google One, and Gemini reached 350 million.

Google also introduced its 8th-generation TPU chips, delivering a threefold increase in model-training performance and an 80% improvement in inference efficiency. In addition, the company launched Gemini 3.1 Pro, the Gemini 3.1 Flash Live voice model supporting 70 languages, the open-source Gemma 4 model with more than 50 million downloads within weeks, and the Veo 3.1 Lite video-generation model.

Android 17 and Google I/O 2026: deep Gemini integration

On May 12, 2026, Google released the Android 17 preview featuring deep integration of Gemini Intelligence, effectively transforming Android into an “intelligent platform” with a proactive AI assistant. Key innovations include automated service booking, on-screen content analysis, the Rambler voice tool designed to eliminate filler words, widget creation via text prompts, 3D emojis, and an upgraded Android Auto experience powered by Gemini.

Gemini Intelligence features are expected to begin rolling out in summer 2026 on Samsung Galaxy and Pixel devices, later expanding to smartwatches, vehicles, smart glasses, and laptops.

Google I/O 2026, taking place May 19–20 in Mountain View, is heavily focused on AI, Android 17, Gemini, and the company’s XR platform. Google is also expected to unveil Aluminium OS — a new operating system for AI-powered smart glasses scheduled for release in 2026.

Antitrust risks and market positioning

In September 2025, a US court allowed Google to retain ownership of Chrome and Android but prohibited exclusive search engine pre-installation agreements. In the EU, the company lost a €2.4 billion antitrust case related to shopping comparison services, with the final ruling confirmed in September 2024. Despite mounting regulatory pressure, Google continues to maintain dominant market positioning, while deeper AI integration strengthens its competitive edge against Microsoft, Meta, and Amazon.

As previously discussed in the article Alphabet holds above $400 as Google Cloud and Gemini support growth, bulls still need to overcome resistance around the $400 level for further upside. However, with GOOGL trading near $394 in premarket trading, the opening of the US session could remain negative.

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