Google's Making a Splash in AI Shopping. Why It's a Massive Deal

"Alphabet ( NASDAQ:GOOGL) has been the best of the Magnificent Seven for a reason. Whether we're talking about the strength of its latest Gemini launch or all the new ways where Google could put its AI to work, it's hard to be bearish about the firm, especially as investors look far beyond just search to the potential markets where Alphabet could disrupt."

"Whether you're looking for a spot in the driver's seat with Waymo and the robotaxi rollout or applications of Gemini that many investors haven't yet had the opportunity to think about, there are a plethora of AI drivers with the firm. And while 2026 could prove quite the challenging year for AI stocks, I still think shares of Alphabet have what it takes to buck the trend by rallying ahead, even if its peers stand still, or worse, march lower, as close to half of the Mag Seven members are doing right now."

"One of the big AI applications where Google could dominate is the field of e-commerce. Undoubtedly, it's early days for AI agent-driven shopping, but if Google has all the right ingredients to rise out as one of the biggest winners. The Universal Commerce Protocol (UCP) puts everything together, with major retailers having a quick and easy way for advanced AI models to find out what's out there while pretty much eliminating the chance of a hallucination."

Alphabet combines leading AI models (Gemini) with autonomous driving (Waymo) and protocol-level commerce tools to expand beyond search into multiple addressable markets. The company can deploy AI across robotaxi operations and consumer-facing applications, creating numerous revenue pathways. Universal Commerce Protocol (UCP) could enable agentic shopping by giving AI agents validated product data and reducing hallucinations. Market adoption of agentic shopping remains uncertain and may complement rather than replace traditional retail websites. Near-term AI sector volatility in 2026 could pressure peers, but Alphabet's diversified AI initiatives and infrastructure position it to potentially outperform even amid broader declines.

Read at 24/7 Wall St.