Goldman Sachs: Google Accelerates Integration of Gemini into Hardware Ecosystem, Shifting AI Strategy Towards Scalable Applications

Goldman Sachs stated in its latest research report that Google will launch the Pixel 11 series, Pixel Watch 5, and the first Bluetooth tracker, Pixel Tag, at the "Made by Google 2026" event, showcasing the new generation of Gemini Intelligence features. Although the hardware business represents a small proportion of Google's overall revenue, Goldman Sachs believes that Google is embedding AI directly into its devices with self-developed chips and multimodal models, while continuously increasing its market share in smartphones and wearables from a low base. The firm believes that the expansion of AI capabilities in devices will enhance the value of Gemini and strengthen Google's competitive position in the consumer internet of the AI era, maintaining a "Buy" rating and a target price of $435.