Key Stats for Alphabet Stock
- Price Change for Alphabet stock: 3%
- $GOOGL Share Price as of Nov. 19: $293
- 52-Week High: $304
- $GOOGL Stock Price Target: $319
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What Happened?
Alphabet (GOOGL) stock surged 3% on Wednesday after Google unveiled Gemini 3, its latest artificial intelligence model that analysts are calling “the current state-of-the-art” in frontier AI.
The new model represents a significant improvement over Gemini 2.5, which launched just eight months ago, and demonstrates Google’s ability to rapidly iterate and compete with rivals like OpenAI and Anthropic.
Gemini 3 delivers better answers to complex questions and requires less prompting to understand context and user intent. The model will be integrated across Google’s product ecosystem, including search, the Gemini app, and enterprise services through Google Cloud.
D.A. Davidson analysts praised the release, saying Gemini 3 “meaningfully moves the frontier forward” with capabilities that “far exceed what we’ve typically come to expect from this generation of frontier models.”
Bank of America analysts called it “another positive step” for Google to close any perceived performance gap with AI competitors.
The rally comes on the heels of Warren Buffett’s Berkshire Hathaway disclosing a new stake in Alphabet, marking one of the conglomerate’s largest technology investments in years.
The combination of the AI breakthrough and Buffett’s endorsement has pushed GOOGL stock up by more than 55% year to date.
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What the Market Is Telling Us About GOOGL Stock
The 3% jump in GOOGL stock reflects growing confidence that Google is maintaining its competitive position in the AI arms race.
While OpenAI kicked off the generative AI boom with ChatGPT in late 2022, Google has rapidly closed the gap through aggressive model development and deployment across its massive user base.
Google Cloud CEO Thomas Kurian provided additional context on the company’s AI momentum during a recent conference appearance.
He revealed that Google Cloud has reached a $50 billion annual revenue run rate, with AI driving accelerated growth. The cloud division has achieved more than $106 billion in remaining performance obligations, with over 50% expected to convert to revenue in the next two years.
Kurian emphasized that Google Cloud is winning in AI infrastructure, models, and applications. The company processes 4x the volume of AI tokens as other hyperscalers and operates 9 of the 10 leading AI labs as customers.
Nine million developers are using Google’s Gemini models, and the company has seen 28% sequential quarter-over-quarter growth in new customer wins during the first half of the year.
What sets Google apart is its full-stack approach. The company designs its own TPU chips, builds its own models, and develops domain-specific AI agents.
This vertical integration allows Google to optimize performance and cost in ways competitors who resell third-party technology cannot match.
Kurian noted that Google’s AI infrastructure delivers 2x the power efficiency and 50% better performance than alternatives.
GOOGL stock investors should pay attention to how AI is expanding Google Cloud’s addressable market. The company now monetizes AI through five different mechanisms: consumption-based pricing, subscriptions, increased product usage, value-based pricing, and upselling. About 65% of Google Cloud customers are already using AI tools in meaningful ways, and those customers use 1.5x as many products as non-AI users.
The Gemini 3 launch also validates Google’s strategy of applying AI across multiple domains. The company is deploying AI agents in customer service, commerce, marketing, and software development. Google’s Gemini code interface, launched in June 2024, has already grown to nearly 1 million users. The company processes roughly 5 billion commerce transactions through its AI agents.
Google Cloud’s operating margins continue to expand as the business scales. The division is growing revenue while improving efficiency through fleet optimization, better sales productivity, and engineering leverage. Kurian highlighted that Google has achieved 33x efficiency improvements in AI inference over the past year.
Bank of America analysts noted that “healthy adoption metrics for AI Overviews and Gemini indicate Google is successfully funneling users into its AI surfaces, despite growing competition.”
This should ease concerns about potential disruptions to search from AI chatbots, and Google’s ability to integrate Gemini 3 across search, enterprise, and consumer products gives it distribution advantages competitors lack.
GOOGL stock is trading near all-time highs as the company demonstrates it can compete in AI while maintaining its core search and advertising businesses.
With Buffett now endorsing the stock and Google Cloud on pace for continued strong growth, investors are betting the company’s AI investments will drive long-term value creation across the entire Alphabet ecosystem.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
