PTC Inc. (NASDAQ:PTC) experienced a 3.8% drop in its stock price on Thursday after Google unveiled a substantial enhancement to its Gemini 3 Deep Think AI mode. The announcement centres on expanded capabilities intended to tackle challenging problems in science, research and engineering - areas that intersect with PTC's established focus on CAD and product lifecycle management software.
Google highlighted several practical uses for the upgraded Deep Think mode, calling out applications for researchers who need to interpret complex datasets and for engineers who model physical systems using code. Among the features described is the ability to transform hand-drawn sketches into 3D-printable models, a capability that directly aligns with core functions of design software that PTC markets to engineering teams.
The company also cited benchmark achievements for the upgraded system, noting gold medal-level results on international mathematics and science competitions. While those benchmarks speak to the model's problem-solving proficiency, the announcement also included distribution details: the upgraded Deep Think is available to Google AI Ultra subscribers and will be offered to select researchers, engineers and enterprises via the Gemini API.
Market reaction to Google's move suggests investors perceive a potential competitive threat to PTC's customer base in engineering and design. PTC's business is built on CAD and PLM tools used across product development workflows, and the introduction of AI-driven features from a large tech provider into the same functional space raises questions about future competitive dynamics.
What remains unclear from the announcement is the direct commercial impact on individual PTC customers or the pace at which enterprises might shift workflows. The expanded availability of Deep Think - beyond internal Google usage to paid subscribers and API partners - means the tool could be adopted by researchers and engineering teams who previously relied on traditional CAD and PLM solutions.
Summary
Google upgraded Gemini 3's Deep Think mode with features for scientific and engineering problem solving, including sketch-to-3D-print transformations. The upgrade coincided with a 3.8% decline in PTC stock, reflecting investor concern about heightened competition in CAD and PLM markets.
Key points
- PTC stock fell 3.8% on Thursday following Google's Deep Think upgrade announcement.
- Google's new features include sketch-to-3D-print conversion and tools for modeling physical systems and interpreting complex data.
- Sectors impacted include engineering software, CAD, PLM and broader enterprise design workflows.
Risks and uncertainties
- Potential competitive pressure on PTC's CAD and PLM offerings as Google introduces overlapping AI-driven capabilities - affecting engineering and design software markets.
- Uncertainty about how quickly PTC customers might adopt alternative AI tools accessed via Google AI Ultra or the Gemini API - relevant to enterprise procurement and software spend.
- Investor concern about PTC's market position as large tech providers expand into engineering-focused AI functionality.