00:00 Speaker A
Well, Google’s recent rally has allowed the stock to outperform other big tech stocks like Nvidia, Microsoft and Oracle. Stock is trading at a record high and closing in on a $4 trillion market cap after the successful launch of its new Gemini 3 AI model. Join me now on where Google stands in the AI arms race. We’ve got Brent Till, Jeffrey’s senior analyst. Brent, always great to see you. So Alphabet, it’s in the green again here today. We are nearing that $4 trillion market cap, Brent.
00:36 Speaker A
Let’s start with the latest news. We have we have the information reporting. Okay, Meta is in talks with Google to spend billions on Google’s chips in its in its data centers. You you cover both Alphabet and Meta. You like both those names Brent. You saw that headline. You saw that report. What did you make of it?
00:58 Brent Thill
I mean it’s good news for Google, but it’s not the end all be all. Remember, everyone is using everyone else’s stuff because there’s such huge demand.
01:07 Brent Thill
Uh Nvidia can’t actually fulfill all the demand that’s needed. So I think no one wants reliance on one vendor, right? So you’re going to see diversification where you can do it.
01:23 Brent Thill
Uh secondarily, right now, everyone’s capacity constrained. We talked to Microsoft, Google, Amazon. Uh effectively, all their backlog numbers are way higher than their reported uh revenue numbers because they’re booking deals that they can’t actually fulfill right now.
01:42 Brent Thill
And so you’re seeing bookings higher than the revenue because of of the demand so high. So, I think spreading and diversifying the risk to Nvidia also uh no one actually has enough demand. I think at the beginning of this uh or enough supply. At the beginning of this entire movement, everyone felt like we would go to one cloud. We would not make the mistake we did in the cloud in the past cycle, which is spread all our our our our workloads everywhere.
02:22 Brent Thill
And the same thing is happening because you don’t want overreliance and you want effectively, you can’t get enough um enough supply. So you’re having to go to multiple vendors uh right now. So, I think, look, the the news flow was incredibly negative at the beginning of the year of the year on Google. Everyone thought they were left for dead when you think about the transition uh to AI from search, and they’ve done a fantastic job of navigating this.
02:51 Brent Thill
Recently, you’ve now seen the anti Nvidia trade. So everything that’s in the Nvidia camp goes down and everything else uh in the Google camp goes up and you see you’ve seen this. So uh right now we’re in kind of the the flavor of the week if you will, which is Google’s doing everything, there there’s nothing wrong, they can’t make any mistakes. Um but that’s kind of the market we’re in right now.
03:19 Brent Thill
I mean, I honestly, I think Me is a way better buy uh down here than chasing Google at current levels. But right now investors uh again, are just chasing the momentum.
