Alphabet shares slide as Gemini delays spark AI execution concerns

Investors question Google's ability to maintain its lead in the generative AI race after reports of product setbacks, adding to a recent period of underperformance for the tech giant.

By Handelsavisen Newsroom · Automated 2026-07-16 21:37 UTC · 1 min read Last updated: 2026-07-17 01:37 UTC

Alphabet Inc. shares declined in trading as reports emerged that Google has delayed updates to its Gemini artificial intelligence model.

The setbacks have intensified scrutiny of the company's execution in the fiercely competitive AI sector, where rivals are rapidly advancing their own large-language model capabilities.

This pullback interrupts a broader rally that had lifted the shares by 105% over the trailing twelve months.

MarketWatch highlighted the delays as a potential signal that Google is struggling to keep pace with the accelerating pace of innovation in the industry.

The sell-off marks a continuation of recent weakness for Alphabet, which has seen its stock retreat 1.5% over the past month.

This pullback interrupts a broader rally that had lifted the shares by 105% over the trailing twelve months.

The latest pressure comes as US equity markets closed lower on Thursday, driven by a broad-based selloff in semiconductor shares and rising investor anxiety over escalating geopolitical tensions in the Middle East.