The AI world is going through a big shift right now. Google’s progress with its new Gemini 3 model is causing a lot of movement in AI-related stocks. Alphabet, Google’s parent company, jumped more than four percent on Monday. This came after an eight percent rise last week. Nvidia, on the other hand, fell six percent last week as investors rethink who really leads the AI race.
Ben Reitzes from Melius Research says Google’s comeback is the biggest thing happening in AI at the moment. Google released Gemini 3 Pro on November eighteen. It has a new Deep Think reasoning mode. Analysts say the benchmarks and the pricing beat expectations. They say it looks even stronger compared to Microsoft’s Ignite announcements and the August release of ChatGPT 5.
Gemini 3 came out on top in tests for coding, using tools, math, science and reasoning across text, images and audio. The model is already available across Google’s own products and on outside platforms like GitHub and Replit. This could give a big push to Google’s API business, which is one of the company’s most profitable areas.
A major strength behind Google’s rise is its own chip. The TPU. It is now in its seventh generation. Reitzes says Gemini 3 was trained mostly on Google TPUs. This gives the company a cost advantage. Outside of Nvidia’s GPUs, TPUs are seen as the most proven and reliable chips for AI. And right now they seem to have very strong momentum.
This progress has put pressure on OpenAI. Sam Altman told employees in a memo that Google’s jump forward may create temporary economic pressure for them. At the same time, reports suggest OpenAI’s user growth has slowed. These worries have affected investor confidence and pushed down stocks connected to OpenAI’s ecosystem. This includes Oracle, AMD, Microsoft, CoreWeave, Broadcom and Nvidia.
AMD and Oracle seem the most at risk. AMD is down twenty three percent from its high in October. Oracle is down thirty nine percent from its peak in September. AMD has a deal with OpenAI that includes adding six gigawatts of capacity starting in late twenty twenty six. Oracle says it has a three hundred billion dollar deal with OpenAI in its long term backlog.
For investors looking for safer places to be during this AI volatility, Reitzes recommends Apple, IBM and Cisco. He calls Apple a toll road for mobile AI. This means Apple benefits no matter which company leads the AI race. He keeps a buy rating on Apple with a price target of three hundred forty five dollars. IBM offers stability with its mainframe cycle and software business. It is also making progress in quantum computing. Cisco is doing well selling optics to hyperscalers for AI and is helped by a pickup in enterprise switching.
Adobe is facing its own challenge. Google’s AI tools for image creation and editing are getting better. These tools may pull some users away from Adobe’s Creative Cloud even though Google and Adobe are working together to integrate Gemini 3.
Overall, Google’s jump forward with Gemini 3 has changed the tone of the AI market. Some companies are gaining confidence. Others are suddenly under pressure. And investors are trying to figure out what the new balance of power looks like.