Google's Gemini 3 AI Model Sparks Market Rally as Alphabet Challenges OpenAI's Dominance

Broadcom is joining Alphabet in the AI rally. Why investors are jumping in

Broadcom shares rallied 10.3% on Monday, as investors poured back into several high-flying tech companies tied to the artificial intelligence trade. Wall Street is also taking notice of the chipmaker as a derivate play of Alphabet's growing AI dominance. Broadcom -- one of the biggest suppliers of high-performance, application-specific chips, or ASICs, for hyperscalers -- has been on a tear this year, rallying 60% year to date. Monday's puts Broadcom shares on pace for their best day since April 9. The stock is also the best performer in the Technology Select Sector SPDR fund (XLK), which tracks the S&P 500 tech sector. The move in Broadcom comes as investors continue to push shares of Google-parent Alphabet higher. The stock rose more than 5% as the artificial intelligence trade regained some of the recently lost ground. The two are related through ASICs: Google is a major customer of Broadcom's ASIC business, as Broadcom helps design and manufacture Google's tensor processing units (TPUs). These are Google's in-house specialized AI chips, used for the company's internal AI infrastructure. Google TPUs are a considered a competitor to Nvidia's graphics processing units (GPUs) for AI workloads. Analysts recently lifted their outlooks on Broadcom on enthusiasm about its relationship with Alphabet. Melius Research's Ben Reitzes last month reiterated his buy rating on Broadcom and lifted his price target on the stock by $60 to $475, which suggests 39.6% potential upside from Friday's close. "Google and its partner, Broadcom, have been at it together with this custom ASIC since 2016, now in its 7th generation. Outside of the Nvidia GPU for AI workloads, the TPU is the most proven ASIC out there -- and now it has the most tangible momentum. The decision to develop this product early is now starting to inflect to the upside -- delivering for both Broadcom's AI revenues and Google Cloud (GCP) growth," Reitzes wrote in an Oct. 27 note to clients. "While good for Alphabet, it may turn out to be even better for Broadcom, who could have huge upside to its AI revenues with Alphabet and a host of other partners who want a piece of this design expertise," he continued, adding that the "TPU is rapidly becoming a larger part of Alphabet's growth strategy."

Alphabet is surging on notion it's winning AI race over OpenAI. Why that's scaring many investors

Alphabet 's recent move into the spotlight on artificial intelligence has sent its shares jumping while other major technology names flounder. Shares of the Google parent surged more than 5% on Monday, adding to last week's gain of more than 8%. The Big Tech stock is on track to finish November higher by more than 11%, which would mark its eighth straight winning month. GOOGL 1M mountain Alphabet, 1-month Wall Street sees Alphabet having an edge in building AI models. It's also considered separate from the circular dealmaking tied to OpenAI that has raised alarm around a potential bubble in recent weeks. "Some investors are petrified that Alphabet will win the AI war due to huge improvements in its Gemini AI model and ongoing benefits from its custom TPU chip," Melius Research analyst Ben Reitzes wrote to clients in a Monday note. "GOOGL winning would actually hurt several stocks we cover -- so prepare for volatility." One reason Alphabet's rise is seen as bad news for other leading technology stocks is they could dominate at everyone else's expense. "One hyperscale winner in AI would be the worst thing for almost everyone, especially if it is Alphabet," Reitzes said. Before Nvidia 's 2% pop on Monday, shares had dropped nearly 6% last week despite posting blockbuster earnings and guidance. The chipmaker was poised to end November down nearly 12%. The Roundhill Magnificent Seven ETF (MAGS) -- which tracks Alphabet, Nvidia and five other megacap tech companies -- shed more than 2% last week. The fund is on pace to lose 4% in the trading month. The tech-heavy Nasdaq Composite finished last week down more than 2%, bringing its month-to-date loss around 4%. "You may be asking why almost all of the AI stocks we cover are selling off after such good news from Nvidia," Reitzes said. "There is one real reason for worry and it is the 'AI comeback' of Alphabet." Because Alphabet is the most vertically integrated hyperscaler and has a string of successes within hardware, Reitzes said it wouldn't need to utilize solutions from Nvidia, AMD or Arista long term. On top of that, he said its Gemini product can gain AI workloads, resulting in a hit for Microsoft , Amazon and Oracle . When it comes OpenAI, Gemini's recent momentum is causing investors to worry that the startup behind ChatGPT "is this generation's AOL," he said. Google announced its Gemini 3 model earlier this month. Silicon Valley is also taking note of Alphabet's AI advancements. Salesforce CEO Marc Benioff said on X on Sunday that he's "not going back" to ChatGPT, which he's used daily for three years, after two hours on Gemini 3. "The leap is insane," Benioff wrote. "Everything is sharper and faster. It feels like the world just changed, again."

Google Alphabet stock price today: Alphabet shares surges 6% as Google roars back in AI -- is Nvidia's reign under serious threat? Here's the key reason

Google Alphabet stock price today: Alphabet stock jumped nearly 6% Monday as Google's Gemini 3 AI model ignited a sharp rebound. Shares of GOOGL and GOOG traded above $300 for the first time and hit $317.75 intraday. Analysts said Gemini 3 outperforms OpenAI and Anthropic and uses Google's custom AI chips, raising pressure on Nvidia, which slipped 0.5%. AMD rose nearly 4%. Alphabet has gained 70% in a year with Q3 profit up 39% and margins up seven points. Google Cloud revenue grew 34%, beating Microsoft and Amazon. Gemini traffic share rose to 13.7% from 5.6%.

Broadcom stock surges 10% as Google AI success boosts supplier outlook By Investing.com

Investing.com -- Broadcom (NASDAQ:AVGO) stock surged 10% Monday, riding a wave of optimism surrounding Google's artificial intelligence advancements. Other Google suppliers also saw significant gains, with Lumentum (NASDAQ:LITE) jumping 13.5% and Celestica (NYSE:CLS) rising 12%. The rally comes as Google parent Alphabet (NASDAQ:GOOGL) climbed 5% amid growing investor confidence in the company's AI capabilities following recent updates to its Gemini model. Google's success is particularly significant for Broadcom, which has partnered with the tech giant since 2016 to develop Tensor Processing Units (TPUs), now in their seventh generation. These custom AI chips have become increasingly important as Google's Gemini 3 model, primarily trained on TPUs, demonstrates competitive advantages. Analysts note that Google's early investment in custom chip development is now paying dividends, potentially giving the company a price advantage in AI processing. The market movement reflects growing recognition of Broadcom's strategic position as a key supplier for Google's AI infrastructure. The TPU partnership represents a significant revenue stream for Broadcom as Google Cloud continues to expand its AI capabilities. However, Mizuho analyst Jordan Klein noted some caution in recent trading patterns, observing that "rotation into GOOG from MSFT, NVDA, META and AMZN feels like could continue as every day more substack articles on how great new Gemini 3 is and what a big lead it now has over Claude, GPT and other models." Melius analyst Ben Reitzes highlighted the importance of Google's TPU momentum, stating, "Outside of the Nvidia GPU for AI workloads, the TPU is the most proven AI chip out there - and now it has the most tangible momentum. The decision to develop this product early is now starting to inflect to the upside - delivering for both Broadcom's AI revenues and Google Cloud (GCP) growth." The market appears to be reassessing supplier relationships in the AI space, with Google's suppliers benefiting from the company's recent AI advances and vertical integration strategy.

Google's Gemini 3 advances shake up AI competitive landscape By Investing.com

Investing.com -- The artificial intelligence landscape is experiencing a significant shift as Google's recent advances with its Gemini 3 model create volatility across AI-related stocks. Google parent Alphabet (NASDAQ:GOOGL) saw its stock rise over 4% on Monday, adding to last week's gain of 8%, while Nvidia (NASDAQ:NVDA) fell 6% last week as investors reassess competitive positioning in the AI race. According to Melius Research analyst Ben Reitzes, Google's AI comeback represents the most important issue in AI right now. The November 18 release of Gemini 3 Pro with its new Deep Think reasoning mode has impressed analysts with benchmarks and pricing that outperformed expectations, especially compared to Microsoft's recent Ignite conference and ChatGPT 5's August release. Gemini 3 topped benchmarks for coding, tool use, math, science, and multimodal reasoning. The model is immediately available across Google's ecosystem and third-party platforms like GitHub and Replit, potentially helping Google's profitable API business. Google's custom TPU chip, now in its seventh generation, has become a significant advantage. Reitzes notes that Gemini 3 was trained primarily on Google TPUs, giving Alphabet a price advantage. Outside of Nvidia's GPUs, the TPU is considered the most proven AI chip with the most tangible momentum. This progress has created concerns for OpenAI, with CEO Sam Altman acknowledging in an internal memo that Google's advances could create "temporary economic headwinds." This admission, combined with reports of slower user growth, has impacted investor confidence in OpenAI and affected stocks like Oracle, AMD, Microsoft, CoreWeave, Broadcom, and Nvidia. AMD and Oracle appear most exposed to OpenAI's success. AMD has fallen 23% from its October high, while Oracle is down 39% from its September peak. AMD's deal with OpenAI involves adding 6GW of capacity starting in the second half of 2026, while Oracle has included a $300 billion deal with OpenAI in its RPO backlog. For investors seeking safer options amid AI volatility, Reitzes suggests Apple (NASDAQ:AAPL), IBM (NYSE:IBM), and Cisco (NASDAQ:CSCO). Apple is described as a "toll road" to mobile AI that can benefit regardless of which company ultimately dominates the AI race. The analyst maintains a Buy rating on Apple with a $345 price target. IBM offers stability through its mainframe cycle and infrastructure software, with promising developments in quantum computing. Cisco is gaining ground selling optics to hyperscalers for AI while benefiting from a campus switching cycle in enterprise. Meanwhile, Adobe (NASDAQ:ADBE) faces challenges from Google's AI image generation and editing tools, which could potentially draw users away from Adobe's Creative Cloud ecosystem despite their partnership to integrate Gemini 3.