Google, the newly awakened AI giant. Will it become the world's biggest company
This article covers why markets are now rallying into December with expectations for a US rate cut jumping to 81%, driving strong rebounds in tech, small caps and gold. Google is emerging as a powerful long-term AI winner, while Westgold, Live Nation and Spotify stand out as three stocks to keep on your watchlist, who could benefit from 2026 tailwinds.
Santa rally ignited after hopes of a US rate cut rise
There's just two more trading days left before December arrives — and the market is starting to pull out the mistletoe, hinting at a potential Santa Rally.
The S&P 500 and Nasdaq rose for a third straight session, while the ASX200 and Hang Seng played catch-up. The strongest mover from bottom to top across major indices? The small-cap Russell 2000, now up 7% from its recent low.
Precious metals are also rebounding, with gold up 6.3% from its October low. The driver behind all of this? A sharp rise in expectations for a US rate cut on December 11 — with odds now sitting at 81%, compared to 30% only days ago.
Fuel was added to the fire after reports the White House is considering Kevin Hassett as the next Fed Chair — someone widely expected to favour lower rates. Trump is expected to announce his decision before Christmas. I’m not a betting person, but the odds certainly look supportive of a Santa Claus rally.
For investors, falling rates typically benefit Tech, Consumer Discretionary, Financials, Miners, Industrials, and Real Estate, which may see increased buying if a December cut is locked in.
From YouTube
Today’s focus: Google — the newly awakened AI giant
Google $Alphabet-C (GOOG.US)$ is rapidly positioning itself as a legitimate challenger in AI chips — a real competitor to Nvidia — and a company that could soon become the world’s biggest by market cap. There is a powerful bullish case building.
I once called Google “the sleeping giant” as search usage dived and people shifted to ChatGPT. But under the surface, Google began building. It was negotiating with Meta to supply its AI chips, and now with Google approaching US$4 trillion in market value — only slightly behind $Apple (AAPL.US)$ and $NVIDIA (NVDA.US)$ — it’s clear the company is no longer asleep.
Last quarter, Warren Buffett took a US$4.3 billion stake in Alphabet, and you have to ask: why would the Oracle of Omaha make that move? There are several structural reasons supporting Google’s rise:
1. Google’s TPUs (tensor processing units)
These are now considered a credible alternative to Nvidia’s AI accelerators for training and running complex large language models.
These are now considered a credible alternative to Nvidia’s AI accelerators for training and running complex large language models.
2. Purpose-built efficiency
Google designed its TPUs specifically for search and matrix multiplication, working with Broadcom to improve both search quality and internal efficiency. TPUs are more specialised than Nvidia GPUs and require less power, which is becoming a critical differentiator as AI workloads explode.
Google designed its TPUs specifically for search and matrix multiplication, working with Broadcom to improve both search quality and internal efficiency. TPUs are more specialised than Nvidia GPUs and require less power, which is becoming a critical differentiator as AI workloads explode.
3. Rising demand from AI leaders
Anthropic, Salesforce, and several major AI developers are moving toward TPUs to reduce their dependence on Nvidia. This opens a huge potential market. If hyperscalers like Microsoft or Amazon begin shifting even a slice of their workloads to Google’s chips, the implications are enormous.
Anthropic, Salesforce, and several major AI developers are moving toward TPUs to reduce their dependence on Nvidia. This opens a huge potential market. If hyperscalers like Microsoft or Amazon begin shifting even a slice of their workloads to Google’s chips, the implications are enormous.
The bullish shift for Google and softening of Nvidia's dominance is already being reflected in market price action. The market is telling us that Google could overtake Nvidia as the most in demand chip company.
– Nvidia hit new lows. It fell 2.6% overnight and is now 16% below its record highs. But Nvidia has a history of falling 10-30% and recovering and hitting new record all time highs.
– Google hit fresh highs, up 36% from its October lows, closing at US$323.44.
Where to from here for Google shares? If you believe the above, you'd think Google will take off like a freight train in 2026. Consensus calls Google a Buy. Though the average price target of US$326.08 suggests it may consolidate (or pull back) before potentially rallying back up up. And then maybe beginning its next upgrade cycle. And hitting new highs over time. But we need to see Google prove its worth first, gain clients and enter an earnings upgrade cycle. This would support higher levels for Google shares 2026. And you should think this is on the cards.
Stocks to Add to Your Watchlist
Gold miners and gold ETFs are climbing again as the potential US rate cut becomes an early Christmas gift for precious-metal bulls. Remember that gold traditionally does well when the US is cutting intertest rates. Gold’s rebound is pushing miners higher, with Westgold $Westgold Resources Ltd (WGX.AU)$ up 4.6% yesterday. WGX has led the ASX200 over the past 60 days, up 63%, taking YTD gains to 112%. Analysts maintain a Buy rating with an average price target of $6.97 versus yesterday’s $5.96, implying about 17% upside.
$Live Nation Entertainment (LYV.US)$ is a stock for those betting on the continued comeback of live entertainment and rising ticket sales. Its shares rose 3.14% overnight. With Lady Gaga touring, and major 2026 tours from Guns N’ Roses, Metallica, Ed Sheeran, BTS and Linkin Park, next year is shaping up to be another blockbuster concert cycle. Live Nation is effectively a near-monopoly in global events. Analysts rate it a Buy, with an average price target of US$169.35, implying 31% upside from last night’s close of US$129.56. Notably, the stock has pulled back nearly 15% this month, giving up its 2025 gains.
$Spotify Technology (SPOT.US)$ is also one to watch. The company is expected to raise prices next year — its first increase in 18 months. Spotify is expanding content, adding more podcasts, and continues to dominate music streaming over Apple. Analysts maintain a Buy rating, reflecting confidence in its sticky 713 million monthly active users and improving profitability trajectory.
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Jessica Amir
Moomoo Market Strategist
moomoo, market strategist.
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