5 reasons Google is having a moment

Core Insights - Google has made a significant turnaround in the AI race, with its new AI model, Gemini 3, receiving positive reviews and leading to a substantial increase in its stock price, which is up nearly 70% this year [2][9] - The company has surpassed Microsoft's market cap and is on track to reach a $4 trillion valuation [2] - Google's advancements in AI and its strategic moves in cloud computing and search advertising have positioned it strongly in the market [5] Group 1: AI Model Success - Gemini 3 has been well-received, outperforming its predecessor and competing models in various benchmarks, including coding and design [8] - The rollout of Gemini 3 has alleviated concerns about Google's competitiveness in AI, contributing to a stock price increase of over 12% since its launch on November 18 [9] Group 2: Cloud Computing Strategy - Google has invested over a decade in developing its Tensor Processing Units (TPUs) for internal use, which are now being utilized to train Gemini models [12] - The company is actively selling access to its TPUs through its cloud business and is in discussions for a significant deal with Meta, which could enhance its market position against competitors like Nvidia [13] Group 3: Legal and Regulatory Landscape - A recent federal judge's ruling in an antitrust case against Google allowed the company to continue its partnerships for default status while imposing minimal penalties, indicating a relatively favorable outcome for Google [16][17] Group 4: Investment Confidence - Warren Buffett's Berkshire Hathaway has acquired a $4.3 billion stake in Alphabet, signaling strong confidence in Google's future, especially as Buffett has historically avoided high-growth tech stocks [19] Group 5: Search Advertising Resilience - Despite concerns about AI's impact on search advertising, Google's search revenues increased by 15% in the third quarter, suggesting that AI is not negatively affecting its core business [24] - Google is testing ads in its AI Mode, indicating a shift towards integrating AI into its search functionality [25]