Google’s (GOOGL) latest AI app, Gemini, has surged to the top of the Apple (AAPL) App Store, overtaking OpenAI’s ChatGPT in the free apps category. The rise comes amid the viral Nano-Banana AI trend, which has captured the attention of users and investors alike. This milestone not only highlights Gemini’s growing popularity but also signals the increasing competition in the AI app landscape.
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Recently, Alphabet, the parent company of Google, made headlines after officially surpassing a $3 trillion market capitalization. Overall, GOOGL stock has gained over 30% year-to-date, highlighting strong investor confidence in the tech giant.
Gemini Rides Viral Nano-Banana Wave
Gemini now ranks number one on Apple’s top free app charts in the U.S., ahead of OpenAI’s ChatGPT and Meta’s (META) Threads. In the UK, it also sits at the top, surpassing ChatGPT and the shopping app PDD’s (PDD) Temu.
This surge is driven by the Gemini 2.5 Flash Image model, dubbed Nano Banana, which has gone viral since its late August launch. In just two weeks, users have generated over 500 million images using the app, bringing 23 million new users since launch. The trend, actively promoted by Google, leverages Gemini’s advanced image-generation capabilities to transform ordinary user photos into 3D figurine-style portraits.
Rising Competition in AI Apps
Interestingly, the Nano Banana trend follows the path of earlier viral AI phenomena, such as ChatGPT’s Ghibli-style image generation, which focused on producing shareable portraits.
The AI app market is experiencing rising competition, with major players racing to capture user attention. As Gemini climbs apps charts, it highlights how quickly innovation and viral adoption can shift market dynamics. Meanwhile, OpenAI, Meta, and emerging startups are boosting their AI offerings, from image generation to chat functionality, intensifying the competition.
Following the Nano-Banana viral trend, KeyBanc’s five-star analyst Justin Patterson commented that if Gemini stays at the top of the App Store charts, more investors could see it as a strong core product with additional uses that enhance, rather than replace, Google’s main search experience. Patterson currently has a Buy rating on GOOGL stock with a price target of $265.
Is Google Stock a Good Buy Right Now?
According to TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 29 Buys and nine Holds assigned in the last three months. The average Google stock price target is $236.85, suggesting a potential downside of 5.7% from the current level.
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