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Google Unveils AI Model Called Gemini

Alphabet Rallies as Gemini Release Eases Fears Over AI Position

AI optimism has fueled 2023 gains in mega-cap tech stocks

Tweet on Alphabet stock fluctuation 

Bloomberg chart

Alphabet Inc. shares jumped on Thursday as the release of the company’s Gemini AI model eased concerns about its position within the highly competitive market for artificial intelligence.

The stock gained as much as 6.1%, its biggest intraday percentage gain since July, and the rally added more than $80 billion to the stock’s market capitalization. Shares are up 55% in 2023, compared with the 46% gain of the Nasdaq 100 Index, or the 53% rise in Microsoft Corp, considered a major AI competitor given its investment in OpenAI.

Despite their year-to-date advance, shares of the Google parent have traded in a range for the past few months, a reflection of how investors are closely monitoring any sign of weakness or strength in the AI landscape.

In October, a disappointing read on Alphabet’s cloud unit — which has been attracting business from AI startups — triggered a steep decline in the shares.

Image: Google