Bloomberg – Shares of Alphabet Inc (GOOGL) experienced their biggest rise in two months on Wednesday, as a wave of glowing reviews about the newly released version of its artificial intelligence model Gemini boosted investor confidence about the company’s position in the ever-changing technological landscape.
Shares rose as much as 6.9%, their biggest gain since early September, to hit a new all-time high. More than 376,000 call options on Alphabet changed hands as of 11:00 a.m. in New York, above the 20-day average of about 290,000 for a full day of trading. The broader S&P 500 index rose about 0.5%, while the tech-heavy Nasdaq 100 gained 0.8%.
See more: Loop Capital recommends buying Alphabet shares after Warren Buffett‘s investment
Google’s parent company launched the latest version of its Gemini artificial intelligence model on Tuesday, which was met with glowing reviews of its capabilities. The strength of the model contrasts with OpenAI’s GPT-5 model, which was met with mixed reactions when it was released earlier this year.
“Is Gemini 3 what GPT-5 was supposed to be?” Robert W. Baird & Co. analyst Colin Sebastian wrote in a note to clients, citing “favorable reviews” of the latest iteration. “In addition to the benefits for search engagement and monetization, Google also combines real-time web indexing with advanced model training, which we consider a key competitive advantage,” he wrote.
The launch of Gemini is the latest good news for Alphabet. Earlier this week, Loop Capital upgraded the stock to Buy, writing that several concerns about the stock had been “erased under waves of AI enthusiasm.”
The stock also got a rare form of validation for a tech company, as Warren Buffett’s Berkshire Hathaway Inc (BRK) revealed late last week that it had built a stake in Alphabet during the third quarter. The position represents a show of confidence from the legendary investor, which tends to be less exposed to technology stocks, aside from Apple Inc (AAPL).
This Wednesday’s rally extended what has been an exceptional year for company shares based in Mountain View, California. Its 57% jump in 2025 makes it the best-performing member of the Magnificent 7 cohort and more than triples the return of the Nasdaq 100 index.
Read more at Bloomberg.com
