Dan Gallagher

And that's why you're seeing the stock sell down a lot on that report.

Driving AI adoption is just trickier for them because ultimately it's going to depend on how many businesses adopt AI, use it in a way that drives business to Microsoft.

And that's just a longer thing to do.

Google's had a lot of things go its way, especially during 2025.

A big thing that helped the stock was the company essentially beat the government's efforts to break it up.

The stock was really underwater before that.

So once the company kind of won those cases and won some very favorable rulings, the stock really started to take off.

And then their latest Gemini model ended up testing really, really well, scored really high on all these benchmarks, got a lot of strong buzz for like surpassing OpenAI and Chad GPT.

And the fact that they were able to train that model on ships that Google itself designed also was a big help for them because it kind of showed just the technical prowess this company has.

So Google had a lot of things helping its narrative over the last six months that really helped its stock.

AI has created this demand for this very specialized type of memory that works within the AI systems.

And so a lot of the production capacity is going towards this very high value memory.

And what that does is that leaves less production capacity for the memory chips that go in your phone or in your PC.

the short of it is you're probably going to see prices go up for a lot of these types of products and you also might see products where there's just less memory in them because you're going to see manufacturers make some design tweaks because they can only get so much memory and so they might just push out more products that have less on more memory for that manufacturers are already paying higher prices and they're already seeing a hit to their profit margins on that

And there's only so much they can absorb.

If you take a manufacturer like Dell, like HP that make PCs, they can take some margin pressure, not a lot.

They need to pass those costs on.

They're really the only company that has what you might call a vertically integrated model here.

Having their own AI, their own cloud network, and even their own silicon kind of makes them a very unique business model in AI right now.

Google just has a lot of things going in its favor right now.