Overview
- Bank of America’s Justin Post reiterated a Buy rating and a $430 price target on Friday ahead of Google I/O on May 19.
- Post expects either Gemini 4 or a major 3.x upgrade with stronger reasoning, better code writing, richer multimodal input, longer context windows, and faster, lower‑cost Flash variants.
- Agentic AI is forecast to be the showcase, with Gemini handling multi‑step tasks across Chrome, Gmail, Maps, Calendar, Search, and Android, including booking, form filling, and calendar edits.
- Additional reveals are projected to include upgraded video, image, and audio generators, more capable software engineering agents, Android 17 updates, and progress on Project Aura smart glasses targeted for the second half of 2026.
- Post warns that adoption of autonomous agents will take years and that Alphabet, trading near 27 times estimated 2027 earnings, may face near‑term pressure if there is no clear “wow” moment, with travel partners like Booking and Expedia seen as likely early collaborators and Amazon not expected.