Alphabet shares Surges As Google Unveils Powerful New AI Model Gemini 3

Alphabet shares: Alphabet shares jumped 5% on Wednesday after Google introduced its most advanced artificial intelligence model yet, Gemini 3, sparking renewed confidence among investors in the company’s AI roadmap. The launch marks a major upgrade from Gemini 2.5, which was released roughly eight months ago, and puts Google in direct competition with other AI leaders including OpenAI and Anthropic.

According to Google, Gemini 3 is designed to deliver more accurate and context-aware responses, requiring fewer prompts to understand user intent. The model will be integrated across Google’s product ecosystem, including Search, the Gemini app, and its enterprise services, expanding AI-powered capabilities across millions of users.

Early performance reviews have been positive. Analysts at D.A. Davidson noted they were quickly impressed during preliminary testing, calling Gemini 3 “a genuinely strong model” and “the current state-of-the-art.” The firm said the new model significantly advances what modern frontier AI systems are capable of, though it maintains a neutral rating on Alphabet stock.

With Gemini 3, Google strengthens its position in the competitive AI landscape. OpenAI continues to push forward with GPT-5 after launching ChatGPT in 2022, while Anthropic has gained traction with its Claude Sonnet 4.5 platform. Industry analysts say Gemini 3 helps close what some considered a performance gap between Google and rivals.

Bank of America Securities analysts called the model “another positive step,” adding that rising usage of AI Overviews and Gemini tools shows Google is successfully directing users to its AI-powered platforms despite strong competition. They also noted early reviews have been encouraging, though the full impact of the model will take time to measure. The firm maintains a “buy” rating on Alphabet.

Alphabet’s stock has also benefited from recent market enthusiasm after Warren Buffett’s Berkshire Hathaway disclosed a new position in the company—a notable move given the conglomerate’s selective approach to major technology investments.

With shares already up more than 55% this year, the successful launch of Gemini 3 signals strong market confidence in Google’s ability to compete and innovate in the fast-evolving AI landscape.

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