Ok, this is getting serious. We need to have a chat about Alphabet.
The Google parent has stormed the gates of the AI trade and is, for now at least, the hottest company in the sector.
Here’s what’s happened in just the past two weeks:
- Berkshire Hathaway revealed a significant stake in the company
- The company’s Gemini 3 chatbot was released to rave reviews
- The stock is up 17% in just seven days, helped by the two developments above
- That share move helped Alphabet surpass Microsoft as the world’s third-most-valuable company, putting it within shouting distance of top-ranked Nvidia and Apple
So if it feels like things escalated quickly, that’s because they very much did. But it can be argued that the seeds of the company’s market-crushing dominance were planted a couple of months ago.
I’m referring to Alphabet’s landmark legal victory in early September, which saw the company avoid having to sell off its Google Chrome web browser. It was important at the time, but with the benefit of hindsight, the removal of that regulatory overhang looks like even more of a crucial inflection point. Just look at the stock chart, which shows a 53% spike since then.
It’s notable that Berkshire Hathaway — which has been historically allergic to high-flying tech stocks — bought in when it did. They haven’t explained the rationale behind their stake, nor do we know exactly when in the third quarter it was built. But a core tenet of Warren Buffett’s investing philosophy has always been to find companies with big competitive moats. What better option than the tech giant that just won its antitrust case?
Going beyond Berkshire, it’s possible that — on the heels of its legal win — Alphabet is simply getting more aggressive with its AI ambitions, rather than playing things more conservative to avoid attracting unwanted attention.
It also has OpenAI paving the way for new technology rollouts with its “move fast and break things” approach. Alphabet has the luxury of being able to monitor developments at OpenAI, and wait to assess the level of blowback before introducing their competing version. Don’t underestimate how much completed AI tech Alphabet has up its sleeve.
Looking forward, the company seems especially well-positioned within the AI trade. They’re a formidable rival to Nvidia on the chipmaking front, but they also have a top-tier chatbot in Gemini 3.
So settle in and get familiar with the market-beating force that is Alphabet, your AI stock of the moment.















