Overview
- Apple has reportedly signed a multi-year agreement to integrate Google’s Gemini into Siri and Apple Intelligence across iPhone, iPad, and Mac, vastly expanding Gemini’s distribution.
- Alphabet’s valuation briefly exceeded $4 trillion this week following the reports, extending gains from a strong 2025 and early 2026 rally.
- Google Cloud’s momentum continues with revenue up roughly 34% last quarter and operating income up about 85%, reinforcing Alphabet’s broader AI strategy.
- Brokerages including Mizuho, Scotiabank, Canaccord Genuity, TD Cowen, and Wells Fargo raised price targets in January, citing Gemini scaling and strengthening Cloud performance.
- Market commentary highlights rising concentration risk in AI leaders and a heavy infrastructure buildout, with Nvidia and TSMC seen as key chokepoints in the hardware supply chain.