TLDR
Alphabet shares surged 3% to a record $292.82 on Wednesday following the Gemini 3 AI model launch
The new model beats OpenAI’s GPT 5.1 and competitors from Meta, xAI, Alibaba, and DeepSeek in benchmark testing
Gemini’s user base grew to 650 million monthly active users, up from 450 million in July
Analysts upgraded their outlook, calling Alphabet a “full-stack AI winner” after previous doubts about its AI strategy
Google introduced Gemini Agent for task automation and Antigravity platform for AI coding
Alphabet stock reached an all-time closing high of $292.82 on Wednesday. The 3% jump came after Google launched its Gemini 3 AI model.
The stock is up over 70% since the start of 2025. Wednesday’s performance brings Alphabet closer to overtaking Microsoft as the third-largest U.S. company by market capitalization.
CEO Sundar Pichai unveiled Gemini 3 on Tuesday, calling it Google’s most advanced AI model. Wall Street analysts responded with enthusiasm about the technology’s capabilities.
Introducing Gemini 3 — our most intelligent model that helps you bring any idea to life.
Gemini 3 is our next step on the path toward AGI and has:
State-of-the-art reasoning
Deep multimodal understanding
Powerful vibe coding so you can go from prompt to app in one shot… pic.twitter.com/zG8r95pGcS
— Google (@Google) November 18, 2025
William Blair analyst Ralph Schackart highlighted a major shift in investor thinking. He said sentiment moved from questioning Google’s AI strategy to viewing the company as a comprehensive AI leader.
Beating the Competition
Gemini 3 Pro outperforms OpenAI’s GPT 5.1 across multiple metrics. Data from Artificial Analysis shows superior results in general intelligence and coding tasks.
The model also topped offerings from xAI, Meta, Alibaba, and DeepSeek. The trade-off is higher usage costs compared to rivals.
D.A. Davidson analyst Alexander Platt compared the launch to OpenAI’s GPT-5 rollout in August. GPT-5 received mixed reviews with benchmark scores that disappointed relative to expectations.
Platt praised Gemini 3 for combining strong benchmark numbers with quality real-world performance. He described it as “the current state-of-the-art” after initial testing.
OpenAI updated its model to GPT 5.1 last week, promising improved intelligence and communication. The timing created a direct face-off between the two tech giants.
User Growth Acceleration
Gemini now has 650 million monthly active users. That represents 200 million new users since July’s count of 450 million.
ChatGPT maintains the lead with 800 million weekly active users. OpenAI’s platform added roughly 100 million weekly users during the same period.
Google’s growth rate is closing the gap between the two platforms. The user acquisition pace has picked up in recent months.
Cantor analyst Deepak Mathivanan pointed out that model improvements historically drive user growth. He’ll monitor search and Gemini app metrics to assess the business impact in 2026.
New Features and Expansion
Google AI Ultra subscribers get access to Gemini Agent, which automates tasks like email management and travel planning. The company also rolled out Google Antigravity, a coding platform powered by AI.
Google DeepMind opened a new AI research lab in Singapore on Wednesday. The facility will collaborate with regional governments, universities, and businesses to enhance Gemini’s capabilities for Google products and Cloud customers.
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