Alphabet's GOOG Surges 11.61% on Meta AI Chip Deal, Berkshire Investment

The share price rose to its highest level so far this month today, with an intraday gain of 3.20%.

Alphabet Inc.’s Class C shares (GOOG) have surged 11.61% over three consecutive trading days, fueled by a potential multibillion-dollar AI chip deal with Meta Platforms and a major investment from Berkshire Hathaway. The reported agreement to supply Meta with Tensor Processing Units (TPUs) for its data centers starting in 2027 has positioned Alphabet as a contender in the high-margin AI hardware market, challenging NVIDIA’s dominance. Meanwhile, Berkshire Hathaway’s $4.34 billion stake in Alphabet’s Class A stock, disclosed in early November, has reinforced investor confidence in its long-term AI and cloud strategies. These developments, coupled with positive reception of Alphabet’s Gemini AI model, have driven renewed optimism about its competitive positioning.

Alphabet’s momentum is underpinned by its expanding AI and cloud divisions. Google Cloud’s 34% year-over-year revenue growth in Q3 2025, driven by AI-driven services, has diversified the company’s income streams beyond advertising. Analysts highlight Alphabet’s financial flexibility, with robust free cash flow enabling sustained investments in AI research and infrastructure. While competition from NVIDIA and regulatory scrutiny remain risks, the firm’s strategic partnerships and innovation in both software and hardware position it to capitalize on the $2 trillion AI market. As the stock approaches a $4 trillion valuation, its ability to execute on AI-driven growth will remain a focal point for investors navigating the tech sector’s evolving landscape.

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