Google holds at critical resistance as AI-driven rally shows signs of slowing

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Google holds at critical resistance as AI-driven rally shows signs of slowing

Gemini and TPU infrastructure become key elements of Alphabet’s strategy

Google continues aggressively expanding Gemini integration across Search, Android, Workspace, and ChromeOS, turning AI into the central component of its ecosystem. At the same time, the company is accelerating development of its proprietary TPU chips and AI infrastructure in an effort to reduce dependence on NVIDIA and strengthen its position in the AI computing market. This week, Alphabet and Blackstone announced the launch of a new $5 billion AI cloud project focused on providing TPU computing capacity to enterprise clients. The market views this move as an important step toward improving AI infrastructure monetization and competing more directly with CoreWeave and other AI cloud providers.

Markets closely monitor rising capex spending and AI monetization

Despite the strong momentum in Alphabet’s AI business, investors remain cautious regarding the scale of the company’s capital expenditures. Alphabet continues rapidly increasing investments in data centers and computing infrastructure in an effort to maintain leadership in the AI sector. Analysts note that markets are increasingly demanding faster monetization of AI services and improved profitability within the cloud segment. An additional positive signal came from Berkshire Hathaway significantly increasing its position in Alphabet, strengthening investor confidence in the company’s long-term AI potential.

Market outlook and key levels to watch

From a technical perspective, GOOGL maintains a moderately bullish structure following recovery from the April correction. After another attempt to move above the $400 area, the stock faced renewed profit-taking, although buying demand on dips remains stable. As long as prices hold above the $385–380 support zone, the market retains potential for a move toward the $410–425 region. At the same time, elevated AI-related spending, intensifying competition with Microsoft and OpenAI, and potential regulatory pressure continue limiting the potential for a more aggressive rally. Failure by bulls to break through resistance could trigger a deeper correction.

In the near term, Alphabet’s performance will primarily depend on the pace of Gemini monetization, Google Cloud growth, and the overall condition of the U.S. technology sector, as was also highlighted in Google stays in focus on AI momentum ahead of I/O 2026.

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