Why Alphabet Shares Have Been Moving: Gemini 3 Momentum and Google’s AI Chip Strategy
Alphabet has been one of the more actively traded mega‑cap tech stocks recently, driven by renewed optimism around its AI roadmap, improving fundamentals, and the growing visibility of its in‑house semiconductor and TPU strategy. The combination of the upcoming Gemini 3 model family, expanded AI infrastructure, and stronger cloud demand has helped fuel investor interest.
The Impact of the Gemini 3 AI Model Family
Alphabet’s AI narrative has re‑accelerated around Gemini 3, the company’s next major multimodal model update. While Google has not yet released full technical specs, reporting from The Information and Reuters suggests Gemini 3 is designed to close capability gaps with competitors and deliver stronger performance in coding, reasoning, and long‑context tasks.
Key reasons Gemini 3 is driving attention:
- Expected improvements in long‑context reasoning and multimodal performance
- Heavy integration into Google Search, Workspace, and Android
- Stronger enterprise positioning for Google Cloud
- Market expectations that Gemini 3 will be more competitive with OpenAI’s latest models
Gemini 1.5 already offers one of the longest context windows on the market, and Gemini 3 is widely viewed as a refinement built for reliability and real‑world business use. This expectation alone has been lifting sentiment around Alphabet’s broader AI ecosystem.
Sources:
- Reuters coverage of Alphabet’s next‑generation model work
- The Information reporting on Gemini 3 development timelines
Google’s In‑House Chip Strategy: TPUs and the New AI ASIC Push
Another major catalyst behind Alphabet’s recent move has been increased attention on Google’s expanding semiconductor strategy. The company has been designing AI chips for nearly a decade, but its latest TPU v5p and Cloud TPU upgrades are positioning Google as one of the key infrastructure players powering the global AI boom.
TPU v5p and Google’s Long-Term AI Roadmap
Google’s TPU v5p, announced in late 2023 and expanded in 2024, is engineered specifically for training large-scale generative AI models. It competes directly with Nvidia’s H100 and Blackwell platforms in certain cloud use cases.
Notable features of Google’s TPU lineup (per Google Cloud documentation):