Alphabet Holds Approximately 7% Stake in SpaceX
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Significant Investment Returns: Alphabet's $900 million investment in SpaceX in 2015 has now resulted in a stake worth over $120 billion, translating to an astonishing 13,400% return, showcasing its strategic foresight and success in the aerospace sector.
- Accelerating Cloud Growth: Alphabet's cloud computing revenue accelerated for three consecutive quarters, with a 48% year-over-year increase in Q4, primarily driven by strong demand for its Gemini models and TPUs, further solidifying its market position in AI.
- Leadership in Autonomous Driving: Waymo provides autonomous ridesharing services in 11 major U.S. cities and is projected to capture 34% of the autonomous vehicle trip market by 2032, outpacing competitors like Tesla, highlighting its competitive strength in future mobility.
- Optimistic IPO Outlook: With SpaceX planning an IPO this summer and targeting a valuation of $1.75 trillion, Alphabet's stake is expected to appreciate further, drawing investor attention to its potential market performance and growth opportunities.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 398.040
Low
305.00
Averages
374.25
High
400.00
Current: 398.040
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Context: This bond issuance follows Google's successful raise of about $32 billion in February, indicating the tech giant's intent to invest heavily in AI, especially given its strong cash flow background.
- Historical Significance: Among the $32 billion raised, Google included a rare 100-year bond, the first of its kind in the tech industry since Motorola's issuance in 1997, reflecting market confidence in long-term investments.
- Industry Trend: As major tech firms increasingly rely on debt financing to support their AI ambitions, Google's actions may prompt similar moves from other companies, potentially transforming the financing landscape across the industry.
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- Market Context: This bond issuance follows Google's successful raise of about $32 billion in February, indicating the tech giant's intent to invest heavily in AI, especially given its strong cash flow background.
- Historical Significance: Among the $32 billion raised, Google included a rare 100-year bond, the first of its kind in the tech industry since Motorola's issuance in 1997, reflecting market confidence in long-term investments.
- Industry Trend: As major tech firms increasingly rely on debt financing to support their AI ambitions, Google's actions may prompt similar moves from other companies, potentially transforming the financing landscape across the industry.
See More
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- Strong Price Recovery: Nvidia's stock has surged approximately 19% over the past 30 days, with a rally exceeding 32% from a late March low, currently trading near its all-time high of $216.61, reflecting strong market confidence in AI chip demand.
- Impressive Financial Results: In its fiscal Q4 2026, Nvidia reported a 73% year-over-year revenue increase to $68.1 billion, with nearly all growth driven by its data center segment, which reached $62.3 billion, up 75% year-over-year, accounting for over 91% of total sales, showcasing the company's robust performance in AI infrastructure.
- Optimistic Future Guidance: The company forecasts fiscal Q1 2026 revenue of $78 billion, representing about 77% year-over-year growth, explicitly excluding any revenue from Chinese data center compute, indicating strong confidence in future growth despite trade policy uncertainties.
- Increasing Market Competition: While Nvidia currently dominates the market, major clients like Amazon, Alphabet, and Meta are developing their own chips, posing a potential long-term threat to Nvidia's market share, which investors should closely monitor.
See More
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- Significant Earnings Growth: Nvidia's latest earnings report reveals a 73% year-over-year revenue increase for fiscal Q4 2026, reaching $68.1 billion, primarily driven by a robust data center segment that generated $62.3 billion, up 75% year-over-year, accounting for over 91% of total sales, underscoring the company's strong competitive position in the AI market.
- Optimistic Future Guidance: Management forecasts fiscal Q1 2026 revenue of $78 billion, reflecting approximately 77% growth, explicitly excluding any revenue from Chinese data centers, indicating confidence in sustained demand for AI infrastructure, which could further boost stock prices.
- Strong Stock Performance: Nvidia's stock has surged about 19% over the past 30 days, nearing its all-time high of $216.61, with a current price-to-earnings ratio of around 43, which is below its 10-year average, suggesting market optimism regarding future growth prospects.
- Market Risks to Monitor: Despite the strong growth momentum, Nvidia faces competition from customers developing their own chips and uncertainties surrounding U.S.-China trade policies, necessitating careful evaluation of the sustainability of AI infrastructure spending to navigate potential market volatility.
See More
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- Market Share Shift: While Nvidia maintains its dominance in AI computing, the rapid rise of custom AI chip businesses from Alphabet and Amazon poses a potential threat to Nvidia's market share, particularly in the competitive cloud computing arena.
- Amazon Chip Growth: Amazon's Trainium chip business is growing at a triple-digit percentage, boosting AWS's overall growth rate to 28%, marking the best quarter in nearly four years, indicating strong demand for custom chips in the market.
- Google Cloud TPU Performance: The eighth-generation TPU launched by Google Cloud excels with an 80% performance improvement in inference over the previous generation, achieving a remarkable 63% year-over-year revenue growth in Q4, further solidifying its position in the cloud computing market.
- Flexibility vs. Performance: Although custom AI chips demonstrate superior performance in certain applications, Nvidia's GPUs remain the preferred choice in the AI sector due to their flexibility, suggesting that the market will continue to demand a coexistence of different technologies.
See More
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- Accelerated Revenue Growth: Alphabet reported significant revenue growth in Q1 2026, with expectations that its growth rate will surpass industry averages, thereby boosting investor confidence in the company despite specific figures not being disclosed.
- Stable Stock Performance: As of May 3, 2026, Alphabet's stock prices showed slight increases, with GOOG up 0.05% and GOOGL up 0.04%, indicating market recognition of its future growth potential.
- Positive Market Reaction: The video published on May 7, 2026, further heightened investor interest in Alphabet, likely attracting more institutional investors and enhancing the company's market position.
- Strategic Implications: The revenue growth not only reflects Alphabet's strong performance in digital advertising and cloud computing but also lays the groundwork for future technological innovations and market expansions, strengthening its competitive edge in the global tech industry.
See More
Rivian Accelerates R2 SUV Production and Deliveries
- R2 SUV Production Boost: Rivian is expected to accelerate the production and deliveries of its R2 SUV in the coming months, which, as the first vehicle priced under $50,000, has the potential to transform Rivian from a niche luxury automaker into an EV giant, driving significant sales growth.
- New Model Plans: Rivian also plans to begin production of additional affordable models, the R3 and R3X, either this year or next, which will further enhance sales growth and strengthen its competitive position in the market.
- Impact of SpaceX IPO: The upcoming SpaceX IPO is expected to break records with a valuation of up to $2 trillion and raise between $50 billion and $75 billion, providing substantial funding for its AI division, xAI, which could indirectly boost Rivian's technological advancements.
- Collaboration with Uber: Rivian has secured a $1.25 billion deal with Uber to supply up to 50,000 R2 SUVs for its robotaxi operations, positioning Rivian to capture more significant orders as the robotaxi market rapidly evolves.
See More
