Did Google win the Artificial Intelligence Game?

Alphabet is emerging as the most preferred winner in the markets in the field of artificial intelligence. Mizuho states that investors now think that Google has already 'won the artificial intelligence game.'

Mizuho TMT expert Jordan Klein shared feedback from 15 portfolio managers he received at a dinner. He expressed that this feedback came in a tone that was much calmer than expected.

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

Mizuho indicated that this confidence stems from the belief that Alphabet possesses all the best features and technologies that will allow it to dominate the field of artificial intelligence next year.

Klein also highlighted the strong excitement around Gemini 3. This product showcases Alphabet's leading position and is supported by a letter from Sam Altman, which states that they have 'fallen behind and need to work to catch up.'

Mizuho also mentioned Google's advantage in proprietary silicon, stating that 'TPU custom ASIC chips are years ahead of any other custom chip and provide significant cost advantages.'

Klein expressed that Alphabet's search and main platforms have shown higher growth against ChatGPT and other artificial intelligence models. This situation reinforces expectations regarding Google's broader foundation for monetizing artificial intelligence agents and technology and increasing market share.

Mizuho noted that the market behaves almost like a 'zero-sum game' regarding artificial intelligence; investors buy Google and its suppliers, such as AVGO, LITE, and CLS, while selling Microsoft, Amazon, and META.

Klein described this dynamic as 'absurd and irrational,' but stated that this illustrates how claims have shaped the overall atmosphere of the artificial intelligence market in the last quarter.