Alphabet shares have been gaining momentum as investors refocus on the company’s rapidly advancing AI strategy, particularly its Gemini 3 model, custom silicon efforts, and ongoing Tensor Processing Unit (TPU) development. These initiatives signal Alphabet’s intent to compete more directly with Nvidia and other AI infrastructure leaders, strengthening investor confidence in its long‑term growth trajectory.
Why Alphabet Has Been Moving Higher
Gemini 3 and the Next Wave of AI Capability
Alphabet recently unveiled Gemini 3, the next iteration of its flagship large‑scale AI model. Early reporting from outlets such as Fortune and Reuters highlights that Gemini 3 is designed to deliver substantial improvements in multimodal reasoning, code generation, and long‑context tasks. The company expects this model to anchor its ecosystem across Search, Workspace, Cloud, and Android, driving a broad AI upgrade cycle.
These advancements position Google to better defend its core search business while expanding its enterprise AI footprint, a key bullish point for investors.
Expanding Commitment to Custom AI Chips
Alphabet has intensified its push into custom AI silicon as competition in AI hardware ramps up. The company announced new generations of its in‑house AI chips designed to support model training and inference at a lower cost and with greater energy efficiency.
This strategy mirrors moves by other hyperscalers to reduce reliance on external GPU providers. As Reuters reported in its coverage of Alphabet’s recent AI hardware announcements, Google aims to optimize performance for its internal workloads while offering these improvements through Google Cloud to enterprise customers.
TPU Development and Competitive Positioning
Alphabet continues to advance its Tensor Processing Units (TPUs), which are central to training and deploying models like Gemini. The latest TPU versions improve throughput and efficiency, allowing Google to scale AI development faster and more cost‑effectively.
Recent TPU generations have positioned Google Cloud as a viable alternative to Nvidia‑powered solutions, supporting the strong revenue growth in Google’s cloud segment. This is one of the reasons Alphabet shares have been outperforming broader tech indexes in recent sessions.
Market Context Supporting Alphabet’s Momentum
The broader market has also been supportive. Renewed optimism about declining interest rates and an ongoing enterprise spending cycle for AI infrastructure have been lifting megacap tech names. Alphabet, with a combination of advanced models and proprietary silicon, is capturing investor attention as a company that benefits from both AI software and AI hardware trends.