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Alphabet shares surge after the release of Gemini 3.0

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2025-11-28 16:419 min read

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The video discusses Alphabet's stock hitting all-time highs due to the launch of its new AI model, Gemini 3. The model is noteworthy for being entirely trained on Google's custom Tensor Processing Units (TPUs) rather than Nvidia's GPUs, marking a significant advancement in its capabilities. This transition allows Google to have tighter control over costs and capacity, especially as the industry faces GPU shortages. Other tech giants like Apple and OpenAI are also beginning to utilize TPUs, indicating a potential shift in the AI infrastructure landscape. The discussion highlights how this could impact Nvidia's dominance and the competitive landscape among major companies. The video concludes by mentioning the bullish sentiment surrounding Alphabet and its place in the broader tech market.

Key Information

  • Shares of Alphabet hit all-time highs, boosted by the launch of its new AI model, Gemini 3, which is currently topping leaderboards.
  • Gemini 3 was entirely trained on Google's custom tensor processing units (TPUs) instead of Nvidia's GPUs, marking a significant advancement.
  • With the use of TPUs, Google is enhancing its control over costs and capacity amidst the industry's ongoing scramble for GPUs.
  • Other major tech players like Apple, OpenAI, and Meta are also expanding their use of TPUs, potentially reducing Nvidia's dominance in the market.
  • The shift towards TPU use aligns with Google's goal to operate at a global scale and enhances its competitive edge in AI, particularly with a reinvigorated leadership.
  • Alphabet's stock performance has been notably strong, being recognized as the best-performing stock among major tech companies this year.
  • Despite strong performance and capabilities, there are suggestions that Google may have more independence in model development as it moves away from reliance on Nvidia.

Timeline Analysis

Content Keywords

Alphabet

Alphabet's shares have hit all-time highs, primarily driven by the launch of its new AI model, Gemini 3, which is now topping industry leaderboards.

Gemini 3

Gemini 3, an AI model developed by Alphabet, showcases the use of Google's custom Tensor Processing Units (TPUs) instead of Nvidia's GPUs, marking a significant shift in AI training.

TPUs

Google has fully embraced TPUs for both training its AI models and serving them, providing tighter control over costs and capacities within the industry.

AI model competition

The competition in AI model building is intensifying, as companies like Google, Anthropic, Apple, OpenAI, and Meta are increasingly committing to the use of TPUs for their models.

Market dynamics

The current market dynamics suggest that while GPU demand continues, Nvidia may face increasing competition and potentially a decrease in its dominance as model builders gain more independence.

Bullish outlook

The development and implementation of TPUs are viewed positively for Alphabet and its strategic direction, providing evidence of the company's alignment between technical depth and practical application.

Sergey Brin

The recent re-engagement of Sergey Brin, co-founder of Google, and the return of Nome Shazir, has coincided with significant advancements in Google's AI capabilities.

Consumer AI competition

As Google advances in AI, it is now competing more closely with other companies for active users in the consumer market, notably against OpenAI.

Tech investment landscape

There is speculation that Alphabet may weather a deflation in the tech bubble better than its rivals, given its legacy business and financial positioning.

Related questions&answers

What fueled Alphabet's stocks to hit all-time highs?

Alphabet's stocks hit all-time highs due to the launch of its new AI model, Gemini 3.

What sets Gemini 3 apart from its predecessors?

Gemini 3 is distinguished by being entirely trained on Google's custom tensor processing units (TPUs) instead of Nvidia's GPUs.

How does Google utilize TPUs in relation to Gemini 3?

Google uses TPUs for both training the Gemini 3 model and serving it, which allows tighter control over cost and capacity.

What implications does the success of TPUs have for the AI industry?

The success of TPUs may suggest a trend towards diminishing Nvidia's dominance in the industry, allowing other model builders to function with more independence.

Why is the expansion of TPU usage relevant for companies like Apple and OpenAI?

Apple and OpenAI are exploring TPU infrastructure, indicating that major tech companies are considering alternatives to Nvidia's offerings for AI developments.

What does the increasing interest in TPUs mean for Google's competitors?

It implies that Google's competitors, who may be less well-capitalized, could face challenges in keeping up in the rapidly evolving AI landscape.

How is the market reacting to Alphabet's technological advancements?

The market is reflecting positively on Alphabet's advancements, as it is currently the best performing stock in the Mag 7 group this year.

What does the current valuation of Alphabet stock suggest?

Despite its performance, Alphabet is still considered one of the cheaper stocks in its group based on a forward price to earnings basis.

How does Google's leadership play a role in its current tech trajectory?

The re-engagement of co-founder Sergey Brin and the return of Nome Shazir are seen as strategic moves that could strengthen Google's AI edge.

What concerns might arise from the rise of TPUs in AI?

The rise of TPUs could create concerns about possible adverse effects on competitors who are less financially stable, like OpenAI.

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