Alphabet stock surges on Gemini 3 AI model optimism

Core Insights - Alphabet's stock increased by 5% following the launch of its new AI model, Gemini 3, indicating strong investor optimism [1] - Gemini 3 is an enhancement over the previous model, Gemini 2.5, released eight months prior, and offers improved responses to complex queries with less prompting [1] Product Integration - Gemini 3 will be incorporated into various Google products, including search services, the Gemini app, and enterprise solutions [2] Analyst Reactions - Analysts from D.A. Davidson expressed strong initial impressions of Gemini 3, labeling it a "genuinely strong model" and the "current state-of-the-art" based on early testing and AI benchmarks [2] - The analysts noted that the new model significantly advances capabilities in certain areas beyond typical expectations for frontier models, although they maintain a neutral rating on Alphabet shares [3]