On the cusp of Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) annual developer event, Google I/O, BofA analyst Justin Post maintained a Buy rating on Alphabet with a price target of $200.

Google I/O takes place on May 14 and is set to show accelerating Al integration across the ecosystem.

While the event is developer-focused, Post expects I/O to be full of AI-related announcements and deeper integration of Gemini into the Google app ecosystem.

Google could use I/O to demonstrate the growing availability of SGE in search results and new mobile capabilities enabled by Gemini, as per the analyst.

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Recently, Google highlighted that Gen-AI integrations into Search are helping grow usage and query volumes, and Google could showcase some of the most compelling SGE use cases, which he flagged. Post said that Google could also announce new SGE features such as streamlined follow-up question capabilities and enriched translations. As per the analyst, the event could include additional demonstrations of successful ad integrations in SGE results.

The analyst also flagged the possibility of Google leveraging the I/O to relaunch or announce improvements in Gemini Image Generation.

While Google has historically launched new Pixel phones at the I/O, this year, the company released the latest Pixel 8a a week before so that new hardware could be less of a focus, Post stated.

He noted that personal mobile assistants could differentiate AI-driven features in new phones. As widely reported in the press, Google could announce a more personal version of Google's digital assistant integrated with Gemini called "Pixie."

The new Gen-AI-powered assistant will likely have multimodal capabilities, such as taking pictures of objects to learn how to use them or getting directions to a place to buy them, he added.

Post flagged that the Android 15 OS is already available as a beta for software developers and includes new features. At I/O, Google could announce new features for Android 15 or other platforms such as Smartwatch Wear OS, Android TV, and Android Auto, he said.

Android's AI capabilities could be in greater focus this year given Google's reported negotiations with Apple for a Gemini licensing deal, Post added.

The analyst noted I/O as another opportunity for Google to show off Gemini capabilities for mobile devices and growing AI integration across Google platforms. While I/O is the last of the three stock catalysts he identified after the Gemini image disappointment, it could help solidify the case for Google as a net AI beneficiary.

He also flagged how Google traffic has remained strong despite new AI-based competition.

Price Action: GOOGL shares traded lower by 1.35% at $166.38 at the last check Monday.

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Image generated using artificial intelligence via Midjourney.