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(Bloomberg) -- Alphabet Inc. shares soared the most in two months on Wednesday as a wave of glowing reviews for the newly released version of its Gemini artificial intelligence model spurred investor confidence about the company’s position in the ever-changing tech landscape.
The stock rose as much as 6.9%, its biggest gain since early September, to hit a fresh record high. More than 376,000 call options on Alphabet changed hands as of 11:00 a.m. in New York, above the 20-day average of about 290,000 for a full day of trading. The broader S&P 500 Index was up about 0.5%, while the tech-heavy Nasdaq 100 gained 0.8%.
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The Google parent on Tuesday launched the latest version of its Gemini artificial intelligence model, which was met with glowing reviews about its capabilities. The strength of the model stands in contrast to OpenAI’s GPT-5 model, which was met with mixed reactions when it was launched earlier this year.
“Is Gemini 3 What GPT-5 was supposed to be?” Robert W. Baird & Co. analyst Colin Sebastian wrote in a note to clients, citing “rave reviews” of the latest iteration. “In addition to benefits to Search engagement and monetization, Google also combines real-time web indexing with advanced model training, which we view as a key competitive advantage,” he wrote.
The Gemini launch is the latest bit of good news for Alphabet. Earlier this week, Loop Capital upgraded the stock to buy, writing that various concerns about the stock had been “obliterated under waves of AI enthusiasm.”
The stock also got a rare form of validation for a tech company, as Warren Buffett’s Berkshire Hathaway Inc. revealed late last week that it had built a stake in Alphabet during the third quarter. The position represents a show of confidence from the legendary investor, who is typically less exposed to tech stocks, outside of Apple Inc.
Wednesday’s rally extended what has been banner year for shares of the Mountain View, California-based company. Its 57% jump in 2025 makes it the best-performing member of the Magnificent 7 cohort and is more than three times the return of the Nasdaq 100 Index.
--With assistance from Elena Popina.
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