Driven by continued breakthroughs in the artificial intelligence business and a number of positive benefits, Google's stock price rose by more than 3% on Tuesday, pushing the Google parent company to the US$4 trillion market capitalization threshold for the first time, continuing its strong gains over the past two months. Since the Nasdaq index peaked on October 29, Google's stock price has risen by about 16%, and its market value has increased by nearly $1 trillion since mid-October.
The key factor driving the rally is Gemini 3, released on November 18. Google’s most advanced AI model to date has performed outstandingly in a number of core tests and has been widely recognized by the market.
Gemini 3 Pro achieved leading results on multiple indicators, including a score of 91.9% in the doctoral-level reasoning test GPQA Diamond and a score of 37.5% in Humanity's Last Exam without using tools, both higher than OpenAI's GPT-5.1 and Anthropic's Claude Sonnet 4.5. The model has also made a qualitative leap in visual reasoning, with a score of 31.1% in the ARC-AGI-2 test, which is much higher than the 4.9% of Gemini 2.5 Pro.
Counterpoint Research analyst Neil Shah said: "The sleeping giant has fully awakened." Since this year, Google's stock price has risen more than 68%, becoming the best-performing technology stock among the "Big Seven" and surpassing Microsoft in market value to rank third in the world.
In addition to breakthroughs at the model level, Google Cloud's business performance is also strong. Third-quarter revenue increased 34% year-on-year to US$15.2 billion, and operating profit increased 85% to US$3.6 billion. Google Cloud’s undelivered contracts reached US$155 billion, an increase of 46% month-on-month.
At the same time, the market reported on Monday that Meta is negotiating a multi-billion dollar deal, planning to rent Google Cloud’s TPU computing power as soon as 2026 and deploy Google’s TPU in its own data centers from 2027. After the news was announced, Google's stock price rose sharply at the opening, while Nvidia's stock price fell by nearly 6.5% at most, and its market value evaporated by approximately US$243 billion.
Another good news comes from Warren Buffett’s Berkshire Hathaway. Documents show that the company established a $4.3 billion Google position in the third quarter, a rare large-scale technology bet owned by Buffett. The value of the position rose by about $415 million in just one week. In addition, an antitrust ruling in September did not require Google to split up the Chrome browser and Android operating system, easing regulatory pressure.
Google's core search advertising business remains resilient, with third-quarter search revenue growing 15% year-on-year. The market believes that the introduction of AI functions is driving the growth of query volume, rather than weakening this most important cash flow business.