Now, things are getting serious. We have to talk about the alphabet.
Google’s parent company is knocking on the AI industry’s doorstep, and is the hottest company in the space, at least for now.
Here’s what happened in the last two weeks.
- Berkshire Hathaway reveals large investment in company
- The company’s Gemini 3 chatbot was released to rave reviews
- The two developments mentioned above helped the stock price rise 17% in just 7 days.
- This market share move has pushed Alphabet past Microsoft to become the third most valuable company in the world, putting it within striking distance of leaders Nvidia and Apple.
So if it feels like things escalated quickly, it’s because they did. But one could argue that the seeds of the company’s market-disrupting dominance were planted months ago.
I’m referring to Alphabet’s landmark legal victory in early September that saved the company from having to sell its Google Chrome web browser. While it was important at the time, in retrospect, eliminating regulatory overhang seems like an even more important turning point. Look at the stock price chart. Since then, we’ve seen a 53% jump.
It’s worth noting that Berkshire Hathaway, which has historically been allergic to tech stocks, bought at the right time. They haven’t explained the basis for the investment, and it’s unclear exactly when in the third quarter it was built. But a core tenet of Warren Buffett’s investment philosophy has always been to find companies with significant competitive advantages. What better option than a tech giant that just won an antitrust case?
Beyond Berkshire, Alphabet may simply be more aggressive with its AI ambitions in the wake of its legal victory, rather than playing things conservatively to avoid attracting unwanted attention.
OpenAI is also paving the way for new technology deployments with a “move fast and break things” approach. Alphabet has the luxury of being able to monitor OpenAI’s development and wait to assess the level of backlash before introducing a competing version. Don’t underestimate how sophisticated Alphabet’s AI technology is.
In the future, the company appears to be particularly well-positioned in the AI industry. They’re a formidable rival to Nvidia in terms of chip manufacturing, but Gemini 3 also includes a top-tier chatbot.
So sit back and get acquainted with the market-beating force: Alphabet, the current AI stock.
