Alphabet's stock has hit an all-time high. What does Wall Street like about its new AI model?

Shares of Google's parent company Alphabet hit an all-time high after the unveiling of its new AI model Gemini 3. Wall Street analysts greeted it with good reviews and said Google was pulling ahead in the race for AI leadership for the first time.

In trading on November 19, Alphabet shares were up 6.7% to $304.25. This was the largest one-day growth since early September and a new high for the entire time of circulation on the stock exchange, reports Bloomberg. As a result, Alphabet came close in terms of capitalization size to Microsoft, which ranks third among the most expensive U.S. companies, Barron's noted.

Investors bought up Alphabet securities amid a resumption of broad market gains and a day after Google unveiled its new AI model Gemini 3. Wall Street and tech analysts met the latest version of the chatbot with positive reviews. This solidifies the company's lead in the race to build the most powerful AI model, overtaking competitors and including developer ChatGPT, which received a rather subdued response to its new model in August, Barron's emphasizes.

Since the beginning of 2025, Alphabet's market value has grown by almost 55%, showing the best dynamics among the players of the "Magnificent Seven". By comparison, the Nasdaq 100 technology index added about 16% over the same period, while the main US stock index S&P 500 added almost 13%.

"Is Gemini 3 what GPT-5 was supposed to be?" - wrote in a Bloomberg outline, Robert W. Baird & Co. analyst Colin Sebastian. Colin Sebastian and recalled "rave reviews." "In addition to improvements in engagement and search monetization, Google combines real-time internet indexing with advanced model preparation - and we believe this is a key competitive advantage," he added.

"Investor attitudes have shifted significantly over the past few months, from doubting Alphabet's ability to win in AI to discussing the company as a potential 'major beneficiary of a full AI stack'." The release of Gemini 3 should bolster investor confidence," said William Blair analyst Ralph Schuckart, as quoted by Barron's.

Analysts at D.A. Davidson also noted that they were impressed with Gemini 3: in their words, it is a "truly powerful model" that shows "the level of the current leading edge standard" in AI. Based on early testing, it beats existing peers on key benchmarks, including GPT-5. "We would even say that the new model [from Google] noticeably pushes the boundaries of what is possible - in a number of tasks, its abilities far exceed what is typically expected from this generation of models," the analysts said.

Bank of America noted that Gemini 3 is "another important step forward" for Google in an effort to reduce the "perceived performance gap of large language models" from competitors. Strong usage rates for Google's new AI Overviews search mode and Gemini itself suggest that Google is successfully migrating users to its AI services despite increasing competition, BofA wrote. That, the bank's analysts said, reduces concerns that AI could undermine the company's traditional search business. At the same time, BofA acknowledged that it is too early to assess the full potential of the new model.

The vast majority of analysts - 64 out of 76 - advise investors to buy Alphabet shares (Buy and Overweight ratings). Another 11 are neutral with a Hold rating and only one advises "sell" (Underweight rating). The Wall Street consensus target price of $324 is almost 14% above the closing level of trading on Nov. 18.

This article was AI-translated and verified by a human editor