On Tuesday, Alphabet shares jumped toward a $4 trillion market value after weeks of gains fueled by its new Gemini 3 AI model and growing demand for its in-house Tensor Processing Unit chips. Reuters said the stock was up 4.1% in premarket trading, putting it on course to breach the milestone at the open, while Business Insider noted the shares are up nearly 70% this year as investors re-rate Google’s AI prospects.
Gemini 3’s strong launch has eased worries that Google was trailing OpenAI, with benchmark tests showing the model outperforming rivals in coding, design, and analysis. At the same time, Google is pushing its TPUs through its cloud unit and is in talks on a multibillion-dollar chip deal with Meta, according to reporting on Google’s chip push, a move that could gradually chip away at Nvidia’s AI hardware dominance.
The rally also reflects reduced regulatory overhang after Google escaped severe penalties in a major search antitrust case, plus a new $4.3 billion stake from Warren Buffett’s Berkshire Hathaway that many see as a strong vote of confidence. For markets, Alphabet’s surge concentrates even more index weight in mega-cap tech and intensifies the rotation within the AI trade away from pure chip plays toward platform and cloud owners with full AI “stacks.”
