This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) stock slid about 1% on Thursday morning after Cantor Fitzgerald analyst kept a Hold rating on the stock despite stronger optimism around the company’s artificial intelligence roadmap.
Shares have gained about 13% in the past month and are up nearly 70% in 2025. The move follows rising expectations for AI-driven growth in Google Cloud, the rollout of the Gemini 3 model, and reports that Meta (META) is weighing Google’s tensor chips for its data-center upgrades.
Cantor’s Deepak Mathivanan said Google may start to see broader benefits from Gemini 3 in fiscal year 2026 as the model reaches Search, Cloud, and other products. He noted the company has offered limited detail on Gemini 3’s structure but said its gains likely stem from scaling compute, improving efficiency, and using data from Google’s services.
Mathivanan added that competing labs could narrow performance gaps as they train on larger infrastructure over the next year. He said state-of-the-art models tend to hold their lead for only a short period, suggesting the stock may pause after its recent run.
