The Google Gemini 3 model has gained market recognition, and Alphabet's stock price surged over 6%, reaching a new high

Wallstreetcn
2025.11.19 19:59
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D.A. Davidson analysts stated that Gemini 3 is a truly powerful AI model capable of competing with products released by OpenAI and Anthropic. Bank of America Securities analysts pointed out that Gemini 3 represents another positive step by Google in "narrowing the perceived performance gap" of large language models between AI competitors. As of the time of publication, Alphabet's stock price has fallen back to 293.76, with an increase of over 3%

Alphabet's stock price soared 5% on Wednesday as investors are optimistic about the competitive advantage brought by Google's latest release of the Gemini 3 artificial intelligence model.

On Tuesday, Wall Street Journal mentioned that Google officially launched the highly anticipated AI model Gemini 3, which went live on Google Search, the Gemini app, and multiple developer platforms on its first day of release, being utilized in several profitable products.

Gemini 3 is an upgraded version launched by Google about eight months after the release of Gemini 2.5. Google stated that Gemini 3 can provide higher quality answers to more complex questions and can determine the context and intent behind user requests without excessive prompting.

D.A. Davidson analysts noted in a report on Tuesday that Gemini 3 is a "truly powerful model" that performed excellently in preliminary tests and AI benchmark scores, sufficient to compete with products released by OpenAI and Anthropic. The report stated:

Based on preliminary tests and benchmark scores, this model significantly advances the development of cutting-edge technology, with capabilities in certain areas far exceeding our typical expectations for this generation of cutting-edge models.

On Wednesday, Google's stock price briefly rose over 6.6% to a new high, before narrowing its gains, and as of the time of writing, the stock price fell back to 293.76, with an increase of over 3%.

Narrowing the Gap with Competitors

Bank of America Securities analysts pointed out that Gemini 3 represents "another positive step" for Google in narrowing the "perceived performance gap of large language models" between itself and AI competitors.

Since OpenAI launched ChatGPT in 2022, sparking a generative AI boom, Google has been under pressure to catch up.

Analysts stated that while it is still early to assess the full capabilities of the new model, some early evaluation results are positive.

AI Overviews and healthy adoption metrics for Gemini indicate that despite increasing competition, Google has successfully guided users to its AI interface, which should help alleviate concerns about potential impacts on its search business.

Alphabet's stock price has also risen recently due to Berkshire Hathaway, led by Warren Buffett, disclosing a new stake in the company, marking one of the largest tech stock investments by the group in recent years.

So far this year, Alphabet's stock price has increased by over 55%. The market has responded positively to the continuous optimization and competitiveness of its AI product line, with investors expecting the company to maintain a leading position in the generative AI field

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