A Strategic Alliance Reshapes the Tech Landscape

A surprising development is unfolding between two long-standing rivals in the digital advertising arena. Alphabet, the parent company of Google, is reportedly on the verge of securing Meta as a major client for its proprietary chip technology. This potential partnership signals a significant shift in the dynamics of the tech sector, moving from intense competition to strategic cooperation and exciting investors in the process.

The fundamental strength driving Alphabet's current position lies in its cloud and artificial intelligence divisions. The company's overall revenue for the third quarter demonstrated solid growth, climbing 16 percent. However, the standout performer was Google Cloud, which acts as the primary growth engine. This segment reported a remarkable 34 percent surge in revenue alongside a record operating profit, proving the company's ability to scale its infrastructure profitably. While competitor Microsoft Azure recently experienced slightly faster growth at approximately 40 percent, Google is making substantial gains in profitability.

The AI software segment is also delivering exceptional results. The "Gemini 3" AI model, launched on November 18, is already exceeding expectations. Reports indicate that, powered by new "Deep Think" capabilities, the model has already reached 650 million monthly active users within the Google ecosystem. This widespread adoption is reflected in key data points:
* Market Control: According to Similarweb, Alphabet now commands nearly 14 percent of all global AI-related web traffic.
* Technical Superiority: In crucial performance benchmarks, Gemini 3 is reportedly leaving its competitors behind.

Should investors sell immediately? Or is it worth buying Alphabet?

A Landmark Deal in Semiconductor Supply

The immediate catalyst for the recent stock rally is a report from The Information. It reveals that Meta is in advanced discussions to begin using Google's "Tensor Processing Units" (TPUs) in its data centers starting in 2027. Furthermore, the parent company of Facebook is also considering renting GPU capacity through the Google Cloud as early as next year.

For Alphabet, this agreement would represent a strategic milestone with dual benefits. It would not only validate the company's years of costly investment in developing its own hardware but also unlock a new multi-billion dollar revenue stream. This move firmly positions Alphabet as a serious hardware contender, directly challenging the established dominance of Nvidia in the chip market.

The powerful combination of a potential mega-deal with Meta and the robust market position of its Gemini 3 AI has shifted sentiment on Wall Street. Market analysts view the stock's breakout to a new all-time high near 285 euros as a confirmation of a sustained upward trend. As Alphabet's market capitalization approaches the $4 trillion mark, the path forward appears clear for further gains.