- Alphabet shares surged 4.5% to a record high, extending gains after a 3.5% rise in the previous session.
- The rally was fueled by optimism surrounding Google's new Gemini 3 AI model and a substantial new stake revealed by Warren Buffett's Berkshire Hathaway.
- The stock has gained over 55% year-to-date, with Google Cloud's revenue run rate hitting $50 billion, driven by AI adoption.
Alphabet Inc. shares climbed to a record high Thursday, closing up 4.5% and pushing the stock to a new peak after a strong 3.5% gain in the prior session. The two-day surge, which saw shares touch $299.66, reflects growing investor confidence in the tech giant's artificial intelligence capabilities and a significant vote of confidence from one of the world's most famous investors.
The rally was ignited by two primary catalysts: the successful launch of Google's Gemini 3 AI model, which analysts are calling a "state-of-the-art" advancement, and a regulatory filing revealing that Warren Buffett's Berkshire Hathaway has established a nearly $5 billion position in the company. According to people familiar with the matter, Berkshire has been steadily building this stake over recent quarters, reallocating capital from other tech holdings.
"The combination of a tangible AI product milestone and the 'Buffett seal of approval' is creating a powerful narrative for the stock," said one portfolio manager who asked not to be named because they are not authorized to speak publicly. "It validates the long-term growth story beyond the near-term regulatory concerns."
Google Cloud's revenue run rate has now reached $50 billion, with company executives citing AI as the primary growth driver. The Gemini 3 launch positions Google to more effectively compete with AI rivals OpenAI and Anthropic, easing concerns that had previously weighed on the stock. The company did not immediately respond to a request for additional comment on the AI rollout timeline.
Despite the bullish momentum, Alphabet continues to face significant regulatory headwinds. A recent antitrust ruling bans exclusive search deals and mandates broader data-sharing, which could restrain how Google controls digital distribution. Implementation of these measures is being closely monitored by regulators in both the U.S. and European Union.
Correction: An earlier version of this article misstated the exact timing of Berkshire Hathaway's regulatory filing. The filing was made public on Wednesday afternoon.