Apple and Google announced on Monday that Apple plans to use Google's Gemini to power future Apple Intelligence features. The companies said this includes an AI-enhanced Siri expected later this year.
The announcement ended months of speculation about a potential collaboration between the two tech giants.
Following the news, shares of Google's parent company Alphabet rose 1% to an all-time high. This pushed its market capitalization above $4 trillion for the first time at the end of the trading day. Apple shares increased 0.3%, though they remain about 9% below their highs from last month.
Wedbush analyst Dan Ives, who is bullish on both Apple and Alphabet, described the deal as a "major validation moment" for Google's Gemini. He called it a key "stepping stone" for Apple in its strategy. Apple had previously indicated its AI-powered Siri would be available as early as last spring, but later told investors it would launch this year after some delays in anticipated AI features.
JPMorgan analysts, who maintain an "overweight" rating on Apple, said they view the multi-year partnership with Google as potentially becoming a longer-term arrangement. They noted investors are likely watching to see if Apple will announce an AI model partner in China next.
"In our view the Street is underestimating what 2026 is going to bring for Apple," Ives said. He cited expectations that the company could make more meaningful progress in its AI roadmap this year. Ives reiterated a Street-high price target of $350 for Apple stock, suggesting nearly 35% upside from Monday's closing price.