Target price increased to $370! HSBC: Gemini 3 successfully made Google (GOOGL.US) search “turn defense to attack”

The Zhitong Finance App learned that HSBC said that the success of Google's (GOOGL.US) Gemini 3 series large-scale language models has mitigated the potential risk of generative AI disruption to the tech giant's search business.

In a report to clients, HSBC analyst Paul Rossington wrote, “We believe Gemini 3 Pro is a cutting-edge model superior to ChatGPT 5.1, which strengthens our confidence that Google Search will not only maintain its share in the market, but also continue to grow.” Based on optimism about the outlook for Gemini 3, Rossington maintained Google's “buy” rating and raised the target price from $335 to $370.

While Gemini 3 is being praised, there are reports that ChatGPT's development company OpenAI is developing a new model codenamed “Garlic.” On the same day, French AI company Mistral also released its latest model series Mistral 3.

Rossington's further analysis indicates that if Google finally commercializes TPU abroad, it may be able to generate revenue equivalent to 10% of Nvidia (NVDA.US) by 2030 and increase the value of Google's current market value by about 6%. Earlier, it was reported that Meta (META.US) is in negotiations with Google on TPU cooperation.

“The complete AI strategy is making substantial progress through initiatives such as the release of Gemini 3 and the potential external commercialization of TPU. The Gemini-driven AI program and its commercialization results will inject new impetus into Google's long-term development prospects,” Rossington said.