Alphabet Shares Soar on ‘Rave Reviews’ for New Gemini AI Model

Core Viewpoint - Alphabet Inc. shares experienced a significant increase due to positive reviews of its newly launched Gemini artificial intelligence model, enhancing investor confidence in the company's market position [1][3]. Stock Performance - The stock rose by as much as 6.9%, marking its largest gain since early September and reaching a new record high [2]. - Over 376,000 call options on Alphabet were traded, surpassing the 20-day average of approximately 290,000 [2]. - The broader S&P 500 Index increased by about 0.5%, while the tech-heavy Nasdaq 100 rose by 0.8% [2]. Product Launch and Market Reaction - The Gemini AI model was launched with overwhelmingly positive reviews, contrasting with the mixed reactions to OpenAI's GPT-5 model [3]. - Analyst Colin Sebastian noted that Gemini 3 could be what GPT-5 was expected to be, highlighting its advantages in search engagement and monetization [4]. Analyst Upgrades and Investor Confidence - Loop Capital upgraded Alphabet's stock to "buy," citing that previous concerns had been alleviated by enthusiasm surrounding AI [5]. - Warren Buffett's Berkshire Hathaway disclosed a stake in Alphabet, indicating confidence from a traditionally cautious investor regarding tech stocks [5]. Year-to-Date Performance - Alphabet's shares have seen a 57% increase in 2025, making it the best performer among the Magnificent 7 cohort and more than tripling the return of the Nasdaq 100 Index [6].