To The Moon

Alphabet stock $Alphabet(GOOG)$ , $Alphabet(GOOGL)$ just played the ultimate chess move. The stock surged over 6% to breach $300 for the first time in history Tuesday, closing at $292.99, So far this year, it has gained 53.85% in return. The champion over MAG 7.

The real story? All the magic started in September.

Core Market Drivers: The Perfect Storm

1. Gemini 3 Pro topped the LMArena leaderboard. This isn't just a model update—it's a declaration of AI supremacy against OpenAI.

2. Berkshire Hathaway dropped a $4.3 billion bombshell. Not only did Buffett buy $Alphabet(GOOGL)$ in Q3, but he made it a top 10 holding for the first time ever. This could be his final major investment before retirement, and the ultimate stamp of approval.

3. The TPU Gambit. Gemini 3 didn't just outperform—it did so on Google's own Tensor Processing Units, not NVIDIA chips. After 1.5 years of Street doubt, Google just revealed its stealth weapon: a full-stack AI empire where it controls the silicon, the software, and the monetization.

The TPU Thesis: How Google Checkmates the AI Industry

As one ex-Googler explained: "Google is shifting the economic center of gravity from NVDA's high-margin GPUs to specialized, high-efficiency TPUs."

@TheShortBear

The Superior Unit Economics of Inference
The world is pivoting from costly AI training to massive-scale inference (billions of daily queries). TPUs, purpose-built for tensor operations, deliver better performance-per-dollar and energy efficiency. For Google's internal use (Search, Ads, Gemini), this slashes their fastest-growing CapEx cost and expands operating margins.

A Commercial Assault on the Ecosystem
Google isn't stopping at internal use. It's selling TPU capacity externally—directly challenging NVDA's monopoly. The Anthropic million-TPU deal proves enterprise readiness. While CUDA's developer lock-in is real, TPU's generational leaps are reportedly dwarfing GPU improvements.

Monetization Synergy: Consolidating the "AI Money"
Google's revenue splits into Ad Money, Cloud Money, and AI Money. By controlling the hardware layer, Google turns its massive compute consumption from a cost center into a proprietary moat. It can underprice rivals on Cloud AI services because its COGS is lower. This wedge accelerates GCP growth and expands margins—structural leverage for the long term.

The Endgame
Google ends up taking a chunk of AWS, Azure, and NVDA earnings as an all-in-one platform to develop, train, and host the next generation of AI. Google Cloud becomes the default place to run it all. Meanwhile, Gemini wins the browser war with superior models. All at a lower cost than competition.

Unreal turn of events. The Street doubted them, but Google kept telling us: their AI efforts were rooted in investments made a decade ago.

Now, some analysts predict $Alphabet(GOOGL)$ will be the first $5 trillion company.

Perhaps that's what Berkshire saw all along.