Tech giant Google’s (GOOGL) new Gemini 3 AI models are helping protect its search business from disruption, according to HSBC (HSBC). More specifically, analyst Paul Rossington said that Gemini 3 Pro is performing better than OpenAI’s (PC:OPAIQ) ChatGPT 5.1, which makes him more confident that Google Search can keep growing instead of just holding its ground. As a result, Rossington raised his price target for Alphabet stock from $335 to $370 and kept a Buy rating.
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However, it is worth noting that while Gemini 3 is getting strong reviews, OpenAI is already working on its next model. At the same time, French company Mistral (PC:MSTRL) announced a new set of models called Mistral 3, thereby adding more competition to the AI space. Still, Rossington sees Google as being well-positioned. He said the Gemini 3 launch and Google’s ability to use the models across its products show clear progress in its AI strategy and may give it an edge in the long run.
Rossington also pointed out that if Google starts selling access to its custom-built tensor processing units (TPUs), it could make up to 10% of Nvidia’s (NVDA) revenue by 2030, which could boost Alphabet’s market value by about 6%. There have also been reports that Meta (META) is in talks with Google to use these TPUs. Therefore, Rossington said that this full-stack AI approach (from building chips to launching AI tools like Gemini) shows real momentum and could support Alphabet’s growth well into the future.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Google stock based on 31 Buys and seven Holds assigned in the past three months. Furthermore, the average Google price target of $314.71 per share implies that shares are trading near fair value.
