Alphabet is increasingly being viewed as the leading winner in artificial intelligence, with Mizuho saying market sentiment now suggests that Google has “already won the AI game.”
The assessment comes from Mizuho TMT specialist Jordan Klein, who spoke with 15 portfolio managers at a dinner shortly after a volatile trading day. Klein said the group’s mood was “far calmer than expected.”
Klein noted that “GOOG was by far the most liked and owned stock,” adding that investors appear “more confident and bullish on Google right now than even on Nvidia.”
According to Mizuho, the strong conviction comes from the belief that Alphabet “has the best technology and capabilities to dominate AI into next year.”
The firm highlighted growing excitement around Gemini 3, which Klein believes puts Google ahead. Mizuho also referenced a letter from Sam Altman acknowledging that his team is “behind and needs to catch up.”
The note emphasized Google’s edge in custom silicon. Mizuho said Google’s TPU chips are “years ahead” of competitors and provide a major cost advantage per token.
Klein added that Google Search and its core platforms are showing stronger growth despite competition from ChatGPT and other AI models. This reinforces expectations that Alphabet has the widest foundation to “monetize and scale AI agents and technologies to gain share and accelerate growth.”
Mizuho also observed that investors are treating AI as “almost a zero-sum game,” buying Google and suppliers such as AVGO, LITE, and CLS, while selling MSFT, AMZN, and META.
Klein called this behavior “silly and stupid,” but said it accurately reflects how the market is positioning heading into the end of the year.
