The success of Google’s (GOOG) (GOOGL) Gemini 3 family of large language models has derisked any potential disruption to the tech giant’s search business, HSBC said.
“Overleaf, we illustrate why we think Gemini 3 Pro is a better frontier model than ChatGPT 5.1, increasing our confidence in Google Search’s ability to grow (rather than just defend) its share of the search market,” HSBC analyst Paul Rossington wrote in a note to clients. Rossington has a Buy rating and upped his price target on Alphabet to $370 from $335, due in part to Gemini 3.
OpenAI (OPENAI), the maker of ChatGPT, is reported to be working on a new model codenamed, “Garlic,” amid the strong praise for Gemini 3. Separately on Tuesday, French AI company Mistral announced its latest family of models, Mistral 3.
Delving deeper, Rossington said Google could generate as much as 10% of Nvidia’s (NVDA) revenue by 2030 if it does in fact monetize its tensor processing units externally and add roughly 6% to Alphabet’s current market cap. Previous reports have indicated that Meta (META) in talks with Google on the matter.
“Full-stack AI strategy delivers tangible progress via launch of Gemini 3 and potential externalization of TPU’s + more,” Rossington explained. “Gemini powered AI initiatives and commercialization thereof should benefit [Alphabet’s] long-term outlook.”