TLDR
- Alphabet stock jumped 5% after Google unveiled its new Gemini 3 AI model
- Gemini 3 provides better answers to complex questions and requires less prompting than previous versions
- D.A. Davidson analysts called Gemini 3 “the current state-of-the-art” after preliminary testing
- Alphabet shares hit an all-time high of $294.55 following Warren Buffett’s disclosure of a $4 billion stake
- The stock is up 60% this year with 38 Wall Street analysts maintaining a Strong Buy rating
Alphabet shares surged 5% on Wednesday as Google introduced Gemini 3, its latest artificial intelligence model. The release comes about eight months after the company launched Gemini 2.5.
The new model represents a clear upgrade over its predecessor. Users can now get better answers to complex questions without providing extensive prompts.
Gemini 3 automatically determines the context and intent behind user requests. This makes the system more intuitive and easier to use.
Google plans to integrate Gemini 3 across multiple platforms. These include its search products, the Gemini app, and enterprise services.
Early reviews from analysts have been positive. D.A. Davidson researchers tested the model against AI benchmarks and came away impressed.
Competitive Positioning in AI Race
The firm called Gemini 3 a “genuinely strong model” in a Tuesday note. They went further, describing it as “the current state-of-the-art” based on preliminary testing.
D.A. Davidson analysts noted that the model “meaningfully moves the frontier forward.” They said its capabilities in certain areas exceed expectations for this generation of frontier models. The firm maintains a neutral rating on the stock.
Bank of America Securities analysts viewed the launch as “another positive step” for Google. They believe it helps close any “perceived LLM performance gap” with competitors.
The analysts pointed to healthy adoption metrics for AI Overviews and Gemini. They said these numbers show Google successfully funneling users into its AI surfaces despite growing competition. Bank of America maintains a buy rating on Alphabet shares.
Google faces stiff competition in the AI space. OpenAI kicked off the generative AI boom with ChatGPT’s launch in 2022 and now offers its GPT-5 model.
Anthropic has gained traction with its Claude chatbot and Sonnet 4.5 model. These competitors have pushed Google to innovate faster.
Buffett Stake Adds Momentum
The Gemini 3 launch wasn’t the only catalyst for Alphabet’s stock. Berkshire Hathaway disclosed a stake worth more than $4 billion in a regulatory filing with the SEC.
The investment makes Alphabet the 10th largest equity holding in Warren Buffett’s portfolio. Berkshire Hathaway only owns two other “Magnificent Seven” tech stocks: Apple and Amazon.
Alphabet shares hit an all-time high of $294.55 on a split-adjusted basis on November 19. The stock has climbed 60% this year.
Most of those gains came in the last three months. The rally began in August after a judge ruled in the company’s favor in an antitrust case.
Concerns about a potential business breakup had weighed on the stock. The court decided against ordering such a move.
Wall Street remains bullish on Alphabet. Thirty-eight analysts cover the stock, with 31 issuing Buy recommendations and seven issuing Hold ratings.
The consensus rating stands at Strong Buy. Analysts have set an average price target of $312.00, which implies 2.82% upside from current levels.
The stock was trading at $294.55 early on November 19. This marked the highest level on a split-adjusted basis in the company’s history.
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