Google stock jumps as Mizuho highlights momentum in AI race

Investing.com - Google parent Alphabet (NASDAQ:GOOGL) stock is gaining momentum in the artificial intelligence race, according to Mizuho’s TMT Desk, which noted that active managers "can no longer sit back and fight the narrative."

The firm highlighted that Google’s dominance in AI has been accelerating following NVIDIA’s (NASDAQ:NVDA) recent earnings report and positive reception of Google’s newest frontier AI model, Gemini 3.

Mizuho observed that what initially appeared to be a potentially short-lived rally for Google and its suppliers has transformed into a broader market narrative suggesting Google might win "the entire AI race" while competitors like OpenAI, Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), NVIDIA, and Amazon Web Services (NASDAQ:AMZN) fall behind.

The analysis points to growing market conviction in Google’s AI leadership, with Mizuho noting that active managers are increasingly reluctant to position against this trend, particularly late in the year when performance metrics are crucial.

A report from The Information indicating that Meta (NASDAQ:META) plans to sign a major deal with Google to rent and purchase their custom AI silicon TPU platform as early as 2026 is further strengthening Google’s position while potentially impacting suppliers like Broadcom (NASDAQ:AVGO), Celestica (NYSE:CLS), and Lumentum (NASDAQ:LITE).

In other recent news, Microsoft has been the subject of several analyst evaluations and projections. Bernstein has reiterated an Outperform rating for Microsoft with a price target of $645, highlighting the strong demand for Microsoft’s Azure cloud platform. BMO Capital also maintained its Outperform rating and a $625 price target, noting Microsoft’s robust position in artificial intelligence and software markets. Jefferies kept its Buy rating and a $675 price target, emphasizing the accelerated adoption of Microsoft’s Copilot as it expands to enterprise-wide use. UBS reiterated its Buy rating with a $650 price target after attending Microsoft’s annual Ignite conference, where discussions with Microsoft’s CFO took place. These evaluations reflect a consistent positive outlook among analysts regarding Microsoft’s growth prospects.

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