In 2026, the AI frenzy is set to continue dominating headlines. Alphabet and Apple have announced a multi-year collaboration, with Apple basing its next generation of models on Google’s technology. This move is seen as a strategic step for Apple to catch up in the AI race.

The collaboration between Apple and Google in the AI space is a significant development, with Apple choosing Google’s technology as the foundation for its models. This move aims to enhance Apple’s AI capabilities and address concerns about falling behind in the AI race.

Apple’s recent announcement of a collaboration with Google in the AI space has sparked mixed reactions, given Apple’s previous delays in rolling out anticipated features like an improved Siri. The deal is expected to boost Apple’s AI trajectory and improve sentiment towards the company.

Both Apple and Google stocks are expected to perform well in their current fiscal years, with analysts revising their earnings expectations upwards. Google’s EPS estimate has seen an 18% increase over the last year, while Apple’s earnings expectations have been on a bullish trajectory since July.

The collaboration between Apple and Alphabet is a win-win situation, with Apple securing its AI backbone and Google solidifying Gemini as a core component of AI infrastructure. This partnership is expected to benefit both companies and further advance AI technology in the consumer ecosystem.

Read more at NASDAQ.: Apple & Google: A New AI Superteam?