Did Google Win the Artificial Intelligence Game?

Alphabet stands out as the most preferred winner in the artificial intelligence field in the markets. Mizuho reports that investors now believe Google has ‘already won the AI game.'

Mizuho TMT expert Jordan Klein shared feedback from 15 portfolio managers during a dinner. He noted that the tone of these responses was much calmer than expected.

Klein emphasized that GOOG is currently the most loved and owned stock, suggesting that investors appear more confident and optimistic about GOOG; he even added that this optimism is higher compared to NVIDIA.

Mizuho stated that this confidence stems from the belief that Alphabet possesses all the best features and technology to dominate the artificial intelligence field next year.

Klein also highlighted the strong excitement surrounding Gemini 3. This product showcases Alphabet's leading position, supported by a letter from Sam Altman stating that they need to work hard to catch up.

Mizuho mentioned Google's advantage in specialized silicon, noting that ‘TPU specialized ASIC chips are years ahead of any other specialized chip and provide them with significant cost advantages.'

Klein stated that Alphabet's search and main platforms have demonstrated higher growth compared to ChatGPT and other AI models. This situation strengthens expectations that Google has the broadest foundation for monetizing AI agents and technology while increasing market share.

Mizuho pointed out that the market behaves almost like a ‘zero-sum game’ in the realm of artificial intelligence; investors are buying Google and its suppliers, such as AVGO, LITE, and CLS, while selling Microsoft, Amazon, and META.

Klein described this dynamic as ‘absurd and illogical,’ yet acknowledged it reflects how claims have influenced the overall sentiment in the AI market in the last quarter.