Alphabet Inc. (GOOGLE) shares soared about 6% to an all-time high on Monday, November 24.
The rise was fueled by a potent combination of optimism around its new AI model and a major vote of confidence from legendary investor Warren Buffett.
One of the main drivers of the rally is the newly released Gemini 3, Alphanet’s most advanced AI model to date.
CEO Sundar Pichai touted its superior reasoning capabilities and its ability to understand nuanced requests with less user input.
The model, which now has 650 million monthly users, is gaining market share in the competitive AI chatbot space.
Another notable factor is that Buffet’s Berkshire Hathaway took a huge new position in Alphabet, buying 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 prominent player. While most of the “magnificent seven” stocks have struggled, Alphabet has seen a remarkable 22% return 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 for Nvidia in the AI chip market.
This follows a major deal to supply AI startup Anthropic with up to one million TPUs, further confirming its vertically integrated AI strategy.
As a result, Alphabet not only boosted its own valuation but also sparked a broad market rally, with the Nasdaq Composite jumping 2.7%.
