Wall Street Shifts Preference to Google Following Gemini 3 Launch, Over OpenAI, Nvidia, and Tesla

Google's Market Surge: Following the release of its Gemini 3 model, Google has seen a nearly 30% increase in its stock this quarter, while stocks related to OpenAI and Nvidia are declining. Investors are now favoring Google's Gemini and TPUs, marking a significant shift in the AI market landscape.

TPUs as a New Revenue Stream: Google is preparing to sell its 7th-generation TPUs to external companies, creating a new revenue pipeline. This move, alongside the Gemini 3 launch, has led to a premium valuation for stocks associated with Google compared to those linked to OpenAI and Nvidia.

OpenAI's Response to Competition: In light of Google's advancements, OpenAI's CEO Sam Altman has declared a "code red" to enhance ChatGPT's performance, indicating a sense of urgency to maintain competitiveness as user numbers for Gemini surpass those of ChatGPT.

Nvidia's Declining Position: Nvidia is facing challenges as concerns grow that Google's TPUs could undermine its GPU dominance, especially with major clients like Meta considering Google's chips. Despite Nvidia's claims of superiority, its stock has been negatively impacted, contrasting with Google's strong performance in the market.