Alphabet Outshines Nvidia in November AI Rally as Gemini 3 and Cloud Growth Drive 11% Surge
Alphabet Inc. (GOOGL) shares rallied 11% in November, defying a bearish trend that saw Nvidia Corp. (NVDA) drop by the same margin. The divergence highlights shifting dynamics in the AI infrastructure race, where Google's Tensor Processing Units (TPUs) are emerging as cost-competitive alternatives to Nvidia's GPUs.
The launch of Gemini 3 AI model delivered a 31% intra-month peak for Alphabet, while its cloud division reported a 46% quarterly backlog growth to $155 billion. "We're seeing AI drive real business results across the company," CEO Sundar Pichai noted during the Q3 earnings call, where results surpassed analyst estimates.
Industry sources suggest Meta Platforms Inc. and xAI are evaluating Google Cloud's TPUs, which reportedly undercut Nvidia's pricing by 50%. Such moves could redirect billions in AI compute spending away from the current market leader.
