Cantor maintains a neutral rating on Alphabet (GOOGL) following the debut of Gemini 3, signaling cautious optimism on the company’s AI trajectory. The firm highlights AI-driven potential as a key long-term catalyst despite no change in valuation stance.
- Cantor maintains a neutral rating on Alphabet (GOOGL) despite positive AI outlook
- Gemini 3 launched with improved multimodal performance and 20% lower inference costs
- AI-driven features saw 40% increase in user engagement in first month post-launch
- AI-related cloud revenue rose 28% YoY in Q3 2025, outpacing overall cloud growth
- Market reaction includes 12% stock gain over past 90 days on AI optimism
- Investors are tracking AI integration metrics and enterprise adoption trends
Cantor has reiterated its neutral rating on Alphabet (GOOGL), underscoring the company’s strategic positioning in artificial intelligence despite no immediate upgrade in investment stance. The firm’s outlook is anchored in the recent rollout of Gemini 3, a next-generation AI model developed by Google DeepMind, which demonstrates enhanced multimodal capabilities and competitive performance against leading models in benchmark tests. The model is now integrated into core Google products including Search, Workspace, and Google Cloud, with early adoption metrics showing a 40% increase in user engagement for AI-powered features in the first month post-launch. The AI momentum is expected to drive long-term value, particularly in Google Cloud, where AI-related revenue grew 28% year-over-year in Q3 2025, outpacing overall cloud services growth of 15%. Analysts note that Gemini 3’s efficiency improvements—achieving 20% lower inference costs—could enhance margins and scalability for enterprise clients. These technical advancements are considered pivotal for Alphabet’s ability to compete with Microsoft’s Azure AI stack and Amazon’s AWS AI tools. While the current neutral rating reflects a wait-and-see approach on near-term earnings impact, the emphasis on AI’s future potential has shifted investor sentiment. The stock has gained 12% in the past 90 days, driven largely by AI-related speculation. Market participants are now closely monitoring quarterly updates on AI integration metrics, customer acquisition in the cloud segment, and monetization of generative AI features across Google’s ecosystem.