Google Upgrades Gemini 3 Deep Think for Enhanced AI Applications
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
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Should l Buy GOOG?
Source: seekingalpha
- Technology Upgrade: Google announced that its Gemini 3 Deep Think model is now available in the Gemini app for Google AI Ultra subscribers, marking the first time it is offered through the Gemini API to select researchers and enterprises, aimed at driving practical applications in science, coding, and engineering.
- Performance Breakthrough: The updated Deep Think demonstrated exceptional performance across several academic benchmarks, notably setting a new standard of 48.4% on Humanity’s Last Exam and achieving an unprecedented 84.6% on the ARC-AGI-2 reasoning benchmark, showcasing its robust capabilities in complex data interpretation and physical system modeling.
- Broad Applications: In addition to mathematics and programming, Gemini 3 Deep Think excels in broad scientific domains such as chemistry and physics, achieving gold medal-level results in the written sections of the 2025 International Physics and Chemistry Olympiads, further solidifying its significance in scientific research.
- Competitive Advantage: With the launch of Gemini 3 Deep Think, Google significantly enhances its competitiveness in the AI space, particularly against products like OpenAI's ChatGPT and Anthropic's Claude, demonstrating its leadership in cutting-edge technology applications.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 273.140
Low
255.00
Averages
336.08
High
400.00
Current: 273.140
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- New Product Launch: Google unveiled Veo 3.1 Lite on Tuesday, its most cost-effective AI video model that enables developers to build high-volume video applications at less than 50% of the cost of Veo 3.1 Fast, significantly lowering the barrier for video generation.
- Pricing Adjustment Plan: Google also announced plans to cut prices for Veo 3.1 Fast on April 7, which will allow more developers to integrate video generation technology into their products, thereby expanding market reach and enhancing competitiveness.
- Technical Specification Advantages: Veo 3.1 Lite supports text-to-video and image-to-video, offering flexible framing options in 16:9 and 9:16 ratios, with support for 720p and 1080p video resolutions, while allowing developers to customize video duration, further enhancing product adaptability.
- Positive Market Reaction: Following the announcement, Google's shares jumped about 5%, reflecting a positive market response to the new product and indicating investor confidence in Google's ongoing innovation and leadership in the AI video sector.
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- Project Shutdown Impact: OpenAI's decision to shut down the Sora video generation project to save costs and computing power indicates a strategic shift towards more commercially viable projects, potentially affecting its competitive edge in the market.
- New Tool Launch: Alphabet has introduced the Veo 3.1 Lite video generation tool, priced at half of the Veo 3.1 Fast, aimed at empowering developers to build high-volume video applications, thereby further solidifying its market position in AI video generation.
- Pricing Strategy Adjustment: Alphabet also announced a one-third price cut for Veo 3.1 Fast, demonstrating an aggressive pricing strategy to capitalize on OpenAI's exit and expand its market share in the competitive landscape.
- Market Outlook Analysis: While OpenAI's exit does not completely clear the AI video generation field, it provides Alphabet with a larger market opportunity, and if it effectively executes its strategy, it could potentially dominate this sector.
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- Price Target Adjustment: Citi has reduced its price target for Micron Technology from $510 to $425, primarily due to a 6% decline in mainstream DDR5 DRAM prices since the company's quarterly results on March 18, which directly impacts market expectations.
- Price Pressure Factors: The bank highlighted that Google's TurboQuant compression technique has exerted pressure on spot prices, resulting in a roughly 19% decline in Micron's stock since Google detailed the method in a research blog post on March 24, reflecting market concerns about future price trends.
- Long-Term Contract Negotiations: Analysts noted that memory suppliers are negotiating multiyear agreements with hyperscale customers to lock in base volumes and prepayments, with such contracts potentially including quarterly pricing adjustments that could support contract prices and enhance market stability.
- Growth in Compute Demand: TurboQuant reduces the memory footprint of AI models through quantization techniques, and Citi believes that these efficiency gains could ultimately increase overall compute demand, similar to the market response seen after DeepSeek's earlier breakthrough, indicating the potential driving force of technological advancements in the industry.
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- Project Termination Reasons: OpenAI announced the retirement of the Sora app, citing cost-cutting and resource reallocation as primary motivations, reflecting the company's struggle to find a viable profit model.
- Market Response Lacks Momentum: After its launch in October 2025, Sora saw a spike in downloads, but user numbers quickly faded, indicating market fatigue towards short AI-generated videos and a failure to establish effective business use cases.
- Intensified Industry Competition: The termination of Sora opens opportunities for competitors, particularly Anthropic and Alphabet, the latter of which is projected to invest $175 billion to $185 billion in AI infrastructure, further solidifying its market position.
- Financial Pressures Emerge: With operational costs for Sora reaching $15 million per day against a total revenue of only $2.1 million, OpenAI faces a cash flow crisis that could impact its future investment and development strategies.
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- Retirement of Sora App: OpenAI's decision to retire the Sora app comes after it failed to find product-market fit, with user numbers declining sharply despite initial interest, leading to operational costs of $15 million per day against total revenues of only $2.1 million, highlighting unsustainable business practices.
- Hollywood's Tepid Response: Despite a partnership with Disney, Hollywood's lukewarm reception to Sora reflects concerns over job losses and intellectual property theft, indicating a broader industry reluctance to embrace AI-generated content, which further limits Sora's market potential.
- Alphabet's Clear Advantage: The discontinuation of Sora is seen as a win for Alphabet, which is aggressively investing in AI infrastructure with projected expenditures of $175 billion to $185 billion, enhancing its competitive edge against OpenAI and Anthropic in the AI landscape.
- Challenges for OpenAI: The end of Sora signifies mounting pressures on OpenAI as it competes with Anthropic and Alphabet, particularly as the company is expected to burn over $17 billion in cash this year, potentially shaking investor confidence in its future viability.
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- Staggering Order Volume: Nvidia CEO Jensen Huang announced a staggering $1 trillion order backlog expected by 2027, which not only highlights the immense potential of AI infrastructure demand but also provides the company with multi-year revenue visibility, significantly boosting investor confidence.
- Diverse Clientele: This order volume comes from major hyperscalers, cloud providers, and sovereign governments worldwide, indicating strong demand for Nvidia's GPUs and data center equipment, with deliveries anticipated over the next 12 to 24 months, thereby mitigating revenue risk for the company.
- High Margin Assurance: With these orders locked in at premium pricing, Nvidia's gross margin is expected to remain robust at 71.07%, ensuring not only short-term profitability but also laying a solid foundation for long-term growth.
- Valuation Appeal: Trading at a forward P/E ratio of approximately 22, near its lowest during the AI revolution, Nvidia's $1 trillion backlog suggests that market expectations for future growth may be overly conservative, presenting investors with increased upside opportunities in the early innings of the AI infrastructure era.
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