Shares of Alphabet Inc. (GOOGLE) climb about 6% to a record high on Monday, November 24.
The surge was fueled by a powerful mix of optimism around its new artificial intelligence model and a major vote of confidence from legendary investor Warren Buffett.
A key driver of this rally is the new Gemini 3, Alphanet’s most advanced AI model to date.
CEO Sundar Pichai touted its superior reasoning skills and ability to understand nuanced requests with less input from the user.
The model, which now has 650 million monthly users, is gaining market share in the competitive AI chatbot space.
Another big factor is Buffet’s Berkshire Hathaway acquiring a massive new position in Alphabet, purchasing 17.8 million shares valued at $4.3 billion.
This historic investment marks the first time Berkshire has purchased Alphabet shares.
These recent developments have positioned Alphabet as a standout player. While most stocks in the “magnificent seven” have struggled, Alphabet has returned a remarkable 22% over the past month.
Market analysts attribute this outperformance to its strong earnings momentum and a relatively low valuation compared to its peers, with a price-to-earnings ratio of 29.
The company’s success also extends to its AI hardware. As revealed in recent reports, Meta Platform is in talks to spend billions on Google’s custom tensor processing units (TPUs), indicating that Alphabet is becoming a formidable competitor to Nvidia in the AI chip market.
This follows a major deal to supply AI startup Anthropic with up to one million TPUs, confirming its vertically integrated AI strategy.
As a result, Alphabet not only propelled its own valuation, but also led to a broad market rally, with the Nasdaq Composite jumping 2.7%.
