Wall Street analysts are getting bullish on Alphabet. Some believe Gemini's momentum could propel shares toward the $400 mark—a significant upside from current levels. What's driving this optimism? Gemini's improving performance in the AI race appears to be shifting competitive dynamics.

Here's the twist: if Gemini continues gaining traction, it might force competitors to reassess their massive spending plans. One major AI lab could potentially scale back capital expenditures as the competitive landscape evolves. We're talking billions in capex adjustments.

The AI arms race has been defined by who can spend the most. But what happens when efficiency starts mattering more than raw compute power? Gemini's recent upgrades suggest Google isn't just throwing money at the problem—they're making strategic bets that could pay off.

For investors, this creates an interesting scenario. Alphabet shares catching a $400 bid would represent substantial gains, while rivals might face pressure to justify their infrastructure spending if one player demonstrates a more capital-efficient path to AI leadership.