Alphabet (GOOG, GOOGL) shares are climbing to a record high after Google announced its latest AI model, Gemini 2.0. The update comes after Google unveiled a new quantum computing chip called Willow, which sent shares soaring. Seaport Research Partners senior analyst Aaron Kessler joins Julie Hyman and Josh Lipton on Market Domination to break down the news and stock movement.

“I think it shows that Google continues to be a leader in AI services. Apparently Google has been investing in AI for several years and was one of the early market leaders. I certainly think there was some concern that OpenAI might step in for Google. As far as ChatGPT is concerned, but I think Google has had a nice boost here with tools like Gemini.”

The analyst says, “It’s probably a few things” driving the stock to record highs, including Gemini 2.0. and General Motors’ (GM) announcement of a quantum computing chip and closure of its Robotaxi unit, eliminating a potential competitor to Alphabet-owned Waymo.

He adds: “Perhaps investors are saying that the likelihood of the new government coming in is becoming less likely. We may see DOJ action toward a real separation of Google and Chrome, which we think is fairly unlikely.”

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This post was written by Naomi Buchanan.