Technology news hit Alphabet investors hard after the company delayed Gemini 3.5 Pro by several months. Shares of Alphabet fell 4.5% in the afternoon session, then closed at $354.64, down 4.4% from the previous close.
Gemini 3.5 Pro and coding
Google will take more time to improve the model’s capabilities in software coding. The delay points to a gap between what the company wants Gemini 3.5 Pro to do and what it has been able to do so far.
Google I/O in May
Gemini 3.5 Pro was first announced at the Google I/O developer conference in May. Google is still testing the model with partners and the U.S. government, which means the product is not yet ready for a broad consumer rollout.
Shares of Alphabet and AI
The setback lands at a sensitive moment in the AI race, where rivals like OpenAI, Anthropic, and Meta have already debuted more competitive models. Alphabet is up 12.9% since the beginning of the year, but it was still trading 11.6% below its 52-week high of $402.62 from May 2026.
Alphabet’s stock has also been unusually stable by its own standards, with only 4 moves greater than 5% over the last year. Investors who bought $1,000 worth of Shares of Alphabet 5 years ago would now be looking at $2,802, which is why a several-month delay on a flagship AI product can still move the market so sharply.
The next question is release timing for consumers. Google has not put a firm consumer rollout date on Gemini 3.5 Pro, and that leaves the model’s path from testing to shipping as the one unresolved part of the story.
