Investing.com -- Wall Street analysts largely welcomed Google’s wave of AI-focused announcements at its annual I/O developer conference, though some remained cautious about monetization and competitive risks.
Goldman Sachs (NYSE:GS) said the event “showcased a number of new products, services and features” and reaffirmed Google’s strategy of embedding Gemini AI across its entire ecosystem. “We came away from the keynote presentation increasingly constructive on Alphabet’s (NASDAQ:GOOGL) long-term strategic positioning,” the bank wrote.
Evercore ISI highlighted progress across both infrastructure and applications. “The new Gemini 2.5 family is smarter and cheaper,” analysts noted, helping drive a 50x increase in AI token processing year over year. Evercore added, “We don’t believe there will be only one AI winner, but we think Google has successfully proven that it will remain a leader in the AI race.”
Citi highlighted to investors in a note the expanding role of agents and personalization, citing growing adoption of the Gemini app and rollout of AI Mode in Search. “The core underlying theme of I/O, in our view, was the focus on creating a more personalized user experience,” Citi wrote.
JPMorgan (NYSE:JPM) said Google’s “total reimagining of search” is taking shape with faster product launches and deeper Gemini integration. “Importantly, Google’s product innovation is accelerating — the company is shipping faster than ever,” analysts said.
BofA said in its note that the “LLM catch-up phase” may be ending, as Gemini 2.5 Pro now leads in major benchmarks. “Google I/O keynote featured a broad slate of AI announcements underscoring growing Gemini integration across the Google ecosystem,” the firm noted.
Wolfe Research struck a more cautious tone, saying the presentation “did little to alleviate the ongoing debate surrounding Search share.” While acknowledging Gemini’s momentum, Wolfe warned that the monetization outlook and competitive positioning remain in flux.