What Happened?
Shares of online advertising giant Alphabet (NASDAQ: GOOGL) jumped 3.3% in the afternoon session after the stock's positive momentum continued as legendary investor Warren Buffett's Berkshire Hathaway disclosed a new $4.9 billion stake in the company, and Google launched Gemini 3, its most advanced artificial intelligence model.
The investment from the famed value investor signaled strong faith in the tech giant's future in artificial intelligence and helped counter growing fears of an AI bubble. Adding to the positive news, Google debuted its updated AI model, Gemini 3, which executives described as a "massive jump" in reasoning and coding ability. The new model was made available immediately across Google’s major products, including its core search engine. This dual news helped ease previous concerns about AI's impact on search revenue, with an analyst from Loop Capital upgrading the stock and noting the search business looked "as healthy as ever.".
After the initial pop the shares cooled down to $293.82, up 3.4% from previous close.
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What Is The Market Telling Us
Alphabet’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 4.4% on the news that Warren Buffett's Berkshire Hathaway disclosed a significant stake in the company. A regulatory filing showed that Berkshire held about 17.85 million shares as of the end of September, a position valued at nearly $4.93 billion. The news surprised many investors, as Berkshire has historically approached large technology stocks with caution. This rare move into the tech sector was seen as a strong vote of confidence in Alphabet. The investment was considered a notable moment and one of the last major decisions overseen by the legendary investor, which signaled growing confidence in the tech and AI sectors.
Alphabet is up 55.1% since the beginning of the year, and at $293.82 per share, has set a new 52-week high. Investors who bought $1,000 worth of Alphabet’s shares 5 years ago would now be looking at an investment worth $3,342.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
