Bank of America expects Alphabet Inc. (NASDAQ:GOOGL) to announce a new Gemini large language model and expanded AI capabilities at its annual developer conference on May 19, analyst Justin Post said in a note.
The firm anticipates Google will unveil a next-generation Gemini LLM, potentially version 4 or a major 3.X upgrade, with stronger reasoning, coding, multimodal, and long-context capabilities. Faster and cheaper Flash variants are expected alongside upgraded models for video, image, and audio generation.
Google may also announce more autonomous coding capabilities through Jules and other software engineering agents. Reports suggest deeper agentic capabilities across Chrome, Gmail, Maps, Calendar, Search, and Android, enabling Gemini to autonomously complete tasks like booking reservations, editing calendars, filling forms, and managing shopping workflows.
Chrome could receive AI-powered browsing capabilities, allowing Gemini to interact with websites and execute multi-step tasks while keeping users in control. Google may unveil expanded AI assistant capabilities with persistent memory, contextual understanding, live camera interaction, and proactive assistance.
Additional AI-driven search features could enhance AI Mode functionality, positioning it as a free AI assistant with improved personalization and multi-app integration. Bank of America noted elevated expectations for this year's event, creating near-term risk if a significant announcement is lacking. The firm reiterated its Buy rating on Alphabet shares.
