On Tuesday, Alphabet shares pushed toward a $4 trillion market value as excitement over its Gemini 3 AI model and custom chips ignited a powerful rally. Reuters reported that the stock was up about 4% in premarket trading, extending a year-long run that has lifted the shares nearly 70% as investors reprice Google’s AI prospects and search resilience.
The rally reflects multiple tailwinds. A new Business Insider deep-dive said Gemini 3’s strong performance, Google’s in-house TPU chips, a favorable antitrust ruling, and a new Berkshire Hathaway stake have all reinforced confidence in the company’s long-term earnings power. The stock has also benefited from a broader Big Tech rebound as markets bet on more Fed rate cuts.
Google’s chip strategy is rippling across markets. Its push to sell TPUs through Google Cloud and reports of potential billion‑dollar deals with large customers such as Meta have raised fears that demand could shift away from Nvidia’s GPUs, a factor that pressured Nvidia and other chip stocks. At the same time, Nvidia is pushing back, telling investors its technology remains “a generation ahead,” underscoring how central AI infrastructure has become to equity valuations.
For investors, Alphabet’s surge highlights a rotation within the AI trade rather than a retreat from it. Profit expectations now hinge not just on model quality but on who controls the full AI stack, from chips and cloud to search and ads. That intensifies competitive risk for other AI leaders and raises the stakes around any change in the interest-rate outlook that could compress lofty tech multiples.
