Wall Street has identified its favored player in the artificial intelligence arena, and it's not OpenAI, Nvidia, or Tesla. Instead, the focus has shifted decisively to Google. Following the release of Gemini 3 on November 18, investors have significantly increased their holdings in Alphabet stock, driving it up by nearly 30% this quarter. Concurrently, companies associated with OpenAI's ecosystem, such as Nvidia and Microsoft, have experienced a downturn. Broadcom, a manufacturer of custom chips for Google, has also seen a remarkable surge in its stock value.
Coinciding with the launch of Gemini 3, a large language model that demonstrated performance equal to or exceeding ChatGPT in several industry benchmarks, Google also unveiled its seventh-generation Tensor Processing Unit (TPU), codenamed Ironwood.
While the introduction of these advanced technologies would have been significant on their own, Google has reportedly expanded its strategy further. The company is now preparing to offer these TPUs to external businesses beyond Google Cloud, thereby establishing a novel revenue stream that was previously non-existent.
Gemini and TPUs Surpass ChatGPT and GPUs in Investor Confidence
The market's reaction was swift and pronounced. Ohsung Kwon, chief equity strategist at Wells Fargo, informed clients this week that stocks linked to Google's Gemini model and TPUs are now trading at a higher valuation compared to those associated with OpenAI and Nvidia, a market dynamic not observed in nearly a decade.
"Now, Gemini/TPU stocks trade at a premium relative to ChatGPT/GPU peers for the first time in nearly a decade, the market is saying GOOGL is winning the AI race," Ohsung stated in the note.
This shift is not merely a matter of perception; the underlying financial fundamentals support the market's behavior. Ohsung highlighted forward price-to-equity ratios as evidence of this transition.
Stocks connected to ChatGPT and Nvidia's Graphics Processing Units (GPUs), which have historically led the artificial intelligence trade, are now being valued lower than those aligned with Google. This includes Broadcom, whose stock has climbed 65% this year, driven by escalating demand for custom Application-Specific Integrated Circuits (ASICs) manufactured for Google.
Meanwhile, OpenAI is evidently feeling the competitive pressure. Sam Altman, its CEO, reportedly informed employees on Monday that the company is initiating a "code red" initiative to enhance ChatGPT's performance and has temporarily halted other product development efforts, according to reports from The Wall Street Journal.
Furthermore, user engagement figures appear to favor Google. Gemini reported 650 million users in October, contrasting with ChatGPT's 450 million users in July.
Nvidia's Momentum Falters as Alphabet Takes the Lead
The excitement surrounding Gemini 3 has also generated concerns regarding Nvidia, a key provider of infrastructure for OpenAI. Nvidia and OpenAI have outlined a multi-phase plan exceeding $100 billion to deploy at least 10 gigawatts of AI data center capacity.
However, investors are now questioning whether Google's TPUs could challenge the dominance of GPUs. This apprehension intensified following reports that Meta, a significant Nvidia client, is considering Google's chips for its data centers. This particular headline alone caused Nvidia's stock to decline by 3%.
Nvidia attempted to counter these developments rapidly. In a post on X, the company asserted that it holds "a generation ahead of the industry" and claimed its chips are more powerful than any offering from Google.
Despite these assurances, the market trend has not reversed. While GPUs are highly effective for general computing tasks, TPUs are specifically optimized for artificial intelligence workloads. This specialized focus may be providing Google with a competitive advantage, a fact that the stock market has clearly recognized.
Ohsung also noted a significant decline in average pairwise stock correlations within the Nasdaq 100, reaching a record low of 14%. This indicates that investors are no longer viewing the artificial intelligence sector as a monolithic growth wave.
By this metric, Alphabet is outperforming its industry peers. Its stock has appreciated by 66% in 2025. In November alone, while other major technology companies within the 'Magnificent 7' experienced declines, Google emerged as the top performer. The same cannot be said for Nvidia. Despite two highly successful years, its year-to-date gains are only 35%, and it has already seen a decrease of over 2% this quarter.