AI Market Update: Gemini’s Rise and Predictions for 2026
OpenAI’s ChatGPT, once dominating the AI market with an 87% share, has seen its influence wane as Alphabet’s Gemini surged to a 21% market share in 2026, up from 5% in 2025, indicating a major shift in the industry. The trend could further disrupt investment strategies as OpenAI faces potential funding issues amid speculation of a $1 trillion valuation and a public offering, according to analytics firm Similarweb.
As the AI market evolves, the S&P 500 is likely to experience a correction, with a drop of at least 10% expected in the latter half of 2026, consistent with historical patterns. Additionally, ongoing power supply constraints may present investment opportunities in companies like Itron and Tesla, which are addressing rising electricity demands and optimizing existing infrastructure.
Despite predictions of a market hiccup, the overall outlook for 2026 remains optimistic, with a potential recovery bolstered by strong infrastructure spending and lower inflation rates.
