A Google Cloud logo is seen during the announcement of Google’s largest ever investment in Germany on November 11, 2025 in Berlin, Germany.
Sean Gallup | Getty Images News | Getty Images
Alphabet Monday revived artificial intelligence trading, which had weakened the previous week. Its stock jumped 6.3%, lifting names associated with AI such as Broadcom, Micron technology And AMD. The main indices have recovered, with the Nasdaq Composite posting its best day in six months.
Investors have been particularly excited about Broadcom because it helps design and manufacture custom AI chips for Alphabet, Google’s parent company. In other words, the more market share Alphabet’s AI offerings gain, the more Broadcom profits — much like Nvidia and the broader AI industry right now. Broadcom shares jumped 11.1% on that notion, making it the S&P 500’s top gainer.
But while investors may applaud Alphabet’s leadership on Monday, not everyone wants it to have the last word.
“Some investors are petrified that Alphabet will win the AI war thanks to huge improvements to its Gemini AI model and continued benefits from its custom TPU chip,” Melius Research analyst Ben Reitzes wrote to clients in a Monday note. “GOOGL would actually hurt several stocks we cover – so prepare for volatility.”
Approaching market movements from another angle, Melissa Brown, managing director of investment decisions research at SimCorp, said it’s concerning that a single stock is driving the market higher. “It just doesn’t seem like a sustainable force to drive the market higher over the next few days,” she added.
Alphabet Monday may have brought about the alpha – in the sense of market outperformance and potentially the start of a new phase of enthusiasm for AI – but letting it also be the omega could cause problems for investors.
What you need to know today
And finally…
Futures options traders work on the floor of the NYSE American (AMEX) of the New York Stock Exchange in New York, the United States, November 19, 2025.
Brendan McDermid | Reuters
Could markets be facing an “everything bubble”? Investors are divided
Dan Hanbury, who co-heads the Global Strategic Equity strategy at investment manager Ninety One, told CNBC that while the formation of an AI bubble appears to be “the ultimate question at the moment,” lagged pricing extends well beyond the realm of artificial intelligence.
“I think if you step back and look at the valuations, it’s very difficult to argue that there isn’t a bubble in the US market,” he conceded. But despite “many red flags” in stock markets, Hanbury said market participants need to take a broader view.
— Chloe Taylor
