Alphabet stock hits record high on Google’s new AI model, Gemini 2.0

Alphabet (GOOG, GOOGL) shares climb to a record high after Google announced its latest AI model, Gemini 2.0. The update comes after Google unveiled a new quantum computing chip, Willow, which sent the stock higher. Seaport Research Partners senior analyst Aaron Kessler joins Julie Hyman and Josh Lipton on Market Domination to break down the news and the stock move.

“I think it shows that Google continues to be the leader in AI services. Obviously, Google’s been investing in AI for several years now, and it was one of the early leaders. Obviously, I think there was concern with OpenAI maybe jumping Google in terms of ChatGPT, but I think Google’s had a nice rebound here with tools like Gemini.”

The analyst says “it’s probably a few things” driving the stock to record highs, including Gemini 2.0. and the quantum computing chip announcment, as well as General Motors (GM) shutting down its robotaxi unit, eliminating a possible competitor to Alphabet-owned Waymo.

He adds, “Maybe investors are saying with the new administration coming in less likely, maybe, we see some DOJ action in terms of really splitting up Google and Chrome, which we think is pretty unlikely.”

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Naomi Buchanan.