Wall Street just picked its fighter, and it isn’t OpenAI, Nvidia, or Tesla. It’s Google. Since the Gemini 3 release on November 18, investors have been rotating hard into Alphabet stock, sending it up nearly 30% this quarter, while names tied to OpenAI’s ecosystem, like Nvidia and Microsoft, are slipping. Broadcom, which makes custom chips for Google, is also on fire.
Anyway, the same time it dropped Gemini 3 (a large language model that, by the way, beat or equaled ChatGPT in several industry tests), Google also dropped its 7th-generation TPU, known as Ironwood.
That alone would’ve been a big play, but Google didn’t stop there. It’s now reportedly getting ready to sell these TPUs to companies outside Google Cloud, creating a new revenue pipeline that didn’t exist before.
Gemini and TPUs overtake ChatGPT and GPUs
Investors responded immediately. Wells Fargo’s Ohsung Kwon, chief equity strategist, told clients this week that stocks tied to Google’s Gemini model and TPUs are now trading at a premium over those linked to OpenAI and Nvidia, something that hasn’t happened in almost a decade.
“Now, Gemini/TPU stocks trade at a premium relative to ChatGPT/GPU peers for the first time in nearly a decade, the market is saying GOOGL is winning the AI race,” Ohsung said in the note.
It’s not just optics. The fundamentals are lining up with market behavior. Ohsung pointed to forward price-to-equity ratios to show the shift.
Stocks linked to ChatGPT and Nvidia GPUs, which until now have always led the AI trade, are finally being priced lower than those aligned with Google. That includes Broadcom, up 65% this year, thanks to growing demand for custom ASICs — chips it manufactures for Google.
Meanwhile, OpenAI is clearly feeling the heat. Sam Altman, its CEO, told employees on Monday that the company is calling a “code red” to improve ChatGPT’s performance and is pausing other product efforts, according to reporting from The Wall Street Journal.
And the user numbers aren’t helping. Gemini had 650 million users in October, compared to ChatGPT’s 450 million in July.
Nvidia loses steam while Alphabet leads
The Gemini 3 buzz also triggered concern around Nvidia, which powers a large part of OpenAI’s infrastructure. Nvidia and OpenAI have a $100 billion+ phased plan to roll out at least 10 gigawatts of AI data centers.
But investors are now asking whether Google’s TPUs could eat into GPU dominance. That fear got louder after reports that Meta, a major Nvidia customer, is looking at Google’s chips for its data centers. That headline alone knocked Nvidia’s stock down 3%.
Nvidia tried to push back fast. In a post on X, the company claimed it “is a generation ahead of the industry,” calling its chips more powerful than anything Google’s offering.
But those words didn’t reverse the trend. GPUs are great for general computing. TPUs, however, are tuned for AI. That focus might be giving Google the edge, and the stock market noticed.
Ohsung also pointed out that the average pairwise stock correlations in the Nasdaq 100 dropped to 14%, a record low. That means traders aren’t treating AI as one big wave anymore.
Alphabet, by that metric, is crushing its peers. Its stock is up 66% in 2025. In November alone, while the rest of the ‘Magnificent 7’ tech names got hammered, Google came out on top. The same can’t be said for Nvidia. Despite two massive years, it’s only up 35% year-to-date and has already dropped more than 2% this quarter.
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