Goldman Sachs: Google Pivots AI Strategy Toward Scaled Applications, Accelerating Gemini Integration into Hardware Ecosystem

Odaily News, Goldman Sachs said in its latest research report that Google unveiled the Pixel 11 series, Pixel Watch 5, and its first Bluetooth tracker, Pixel Tag, at the "Made by Google 2026" event, with a concentrated showcase of the next-generation Gemini Intelligence features. Although the hardware business accounts for a relatively small share of Google's overall revenue, Goldman Sachs believes that Google is leveraging its custom chips and multimodal models to embed AI directly into devices, while continuing to grow its smartphone and wearable market share from a relatively low base.

The firm believes that the expansion of on-device AI capabilities will enhance the value of Gemini and strengthen Google's competitive position in consumer internet within the AI era. It maintains a "Buy" rating and a price target of $435.