Prime Highlights:

• Alphabet’s renewed product rollout has strengthened its position and boosted investor confidence.
• Experts say the company’s recent progress marks a major turnaround after earlier setbacks.

Key Facts:

• Despite growing usage of the Gemini app and Overviews feature, Google still trails OpenAI in total user engagement.
• Analysts agree that Google’s recent performance has reshaped market sentiment, placing the company firmly back among top tech leaders.

Background:

Alphabet is back in the spotlight as the company’s renewed push in artificial intelligence fuels strong gains in its stock and renewed confidence from industry leaders. After months of rapid development, Google’s launch of its Gemini 3 model and its latest TPU chip, Ironwood, has analysts calling it the company’s most convincing AI comeback yet.

Alphabet shares climbed more than 5% on Monday, extending last week’s 8% rally. The surge comes after Warren Buffett’s Berkshire Hathaway disclosed a $4.3 billion stake in Alphabet and as the company’s market value passed Microsoft’s. Alphabet’s stock has now risen nearly 70% this year, outperforming several major tech peers.

For years, Google was criticized for falling behind in AI following the debut of ChatGPT in 2022. But experts say the company has finally aligned its research strengths with real-world products. The debut of Gemini 3 last week, a model designed to provide sharper, faster responses with minimal prompting, marked a key moment in Google’s return to form.

Salesforce CEO Marc Benioff publicly praised the update, writing that after just two hours of using Gemini 3, he preferred it over ChatGPT, calling the improvement “insane.”

Alongside the software advances, Google introduced Ironwood, the seventh generation of its tensor processing units (TPUs). The company says the chip is far more power-efficient and capable of handling the largest AI workloads, making it attractive to enterprise customers. Google has already secured major deals, including multibillion-dollar partnerships with Anthropic.

Analysts say one of Google’s biggest strengths remains the vast amount of video and real-time data available through YouTube, giving it an advantage in training advanced image and video models.

Google executives acknowledge that staying ahead won’t be easy. The company says it must double its AI serving capacity every six months to meet global demand. Experts note that Google still lags behind OpenAI when it comes to user engagement, even though the Gemini app and Overviews feature have been widely adopted.

Even so, analysts say Alphabet’s recent progress marks a major turnaround for the company. After earlier setbacks and delays, Google is once again viewed as a strong player shaping the next phase of technological innovation.