Alphabet Inc., the parent company of Google, defied typical market mechanics on Monday. Despite trading ex-dividend—a condition that usually triggers a price drop equivalent to the payout—the company’s stock continued its upward trajectory. This display of strength is being fueled by market chatter regarding a potential strategic partnership that could reshape the competitive landscape of the artificial intelligence sector.
A Potential Hardware Shift
The core of the speculation centers on Alphabet’s hardware division. According to recent reports, Meta Platforms is in discussions to source AI chips directly from Alphabet starting in 2027. The talks reportedly involve proprietary solutions like the Axion or Tensor Processing Unit (TPU) series for powering Meta’s data centers.
Confirmation of such an agreement would represent a significant strategic pivot. It would position Alphabet not merely as a cloud services provider but as a direct competitor to Nvidia in the lucrative AI hardware market. Investors view this potential diversification of revenue streams as a clear positive for the company’s long-term valuation.
Technical Factors Overridden by Sentiment
The current strategic optimism is overwhelming a standard technical headwind. On the ex-dividend date, a stock’s price typically adjusts downward by the amount of the dividend, in this case $0.21. The fact that Alphabet shares are ignoring this pattern and posting gains instead points to substantial underlying demand.
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This bullish sentiment is reinforced by positive analyst commentary. A recent assessment from The Motley Fool highlighted Alphabet as a favored AI investment for the coming decade. The rationale cites the company’s comprehensive vertical integration, spanning from its own chip architecture and cloud infrastructure to its dominant Gemini AI models.
Chart Analysis Reflects Broader Confidence
The overarching price trend mirrors growing investor confidence. Since the beginning of the year, the stock has recorded a gain of nearly 50 percent. Trading at a current price of 276.55 euros, the shares are now only about 1.1 percent below their 52-week high, bringing that resistance level into sharp focus.
Market participants are now looking ahead to Tuesday, when rival OpenAI is scheduled to unveil its new GPT-5.2 model. The launch will be scrutinized for any potential impact on the competitive standing of Google’s Gemini ecosystem. The next major milestone for financial confirmation will be the quarterly earnings report scheduled for February 3, 2026.
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