Citi: Maintaining Alphabet as one of the preferred targets, Gemini is expected to become a "super assistant"

Citigroup's report pointed out that Alphabet's Google I/O 2026 conference highlighted Google's accelerated pace of product updates and the deepening integration of Gemini throughout its product portfolio, leading the bank to believe that its goal of becoming a "universal assistant" is within reach. The bank believes that some of the more incremental product announcements include Google's redesigned search box, Gemini Flash 3.5, Spark's personalized AI agent, and Universal Cart, all of which are expected to significantly accelerate its opportunities in the Agentic Commerce field. The report stated that the products announced at the I/O conference have strengthened the bank's confidence in the following views: against the backdrop of overall GCP strength, Google's AI products can drive sustained growth in search queries. Additionally, with Gemini's monthly active users surpassing 9 billion, combined with the launch of their low latency/ high efficiency Gemini 3.5 Flash model, and the continuous increase in Gemini adoption rates. Alphabet remains one of the bank's top picks, as the bank restated its "buy" rating and $447 target price.