Waymo Leads the Charge in U.S. Robotaxi Market, but Competition Heats Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2024
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 332.290
Low
305.00
Averages
374.25
High
400.00
Current: 332.290
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.
Google Cloud Partners with Thinking Machines Labs for AI Infrastructure
- Agreement Signed: Google Cloud has inked a new agreement with Thinking Machines Labs to provide expanded access to its Nvidia-powered AI infrastructure, marking a significant collaboration in the AI sector.
- Innovative Technology Application: Thinking Machines Labs will utilize A4X Max with Blackwell architecture, becoming one of the first Google Cloud customers to leverage Nvidia's GB300 NVL72, enhancing the development of its flagship product, Tinker.
- Performance Enhancement: By integrating high-performance compute, fast storage, and automated remediation, researchers at Thinking Machines noted that Google Cloud's AI Hypercomputer has enabled them to achieve record speeds, significantly improving product development efficiency.
- Strategic Investment Value: Although the terms of the deal were not disclosed, TechCrunch reported that this multi-billion dollar agreement underscores Google Cloud's strong investment intent and market potential in the AI infrastructure space.
See More
Alphabet Set to Release Q1 2026 Earnings Amid AI Growth
- Search Business Growth: Google Search's advertising segment, which accounts for over half of Alphabet's revenue, achieved a record $63.1 billion in Q4 2025, reflecting a 17% year-over-year increase, indicating significant user engagement boosts from AI features, with expectations for this momentum to continue into Q1 2026.
- Surge in Cloud Orders: Google Cloud generated $17.7 billion in revenue in Q4 2025, up 48% year-over-year, and ended 2025 with a staggering $240 billion order backlog, a 55% increase from three months prior, suggesting substantial future revenue growth potential.
- Enhanced AI Features: The newly introduced AI Mode in Google Search has increased average query lengths by three times, significantly boosting user interaction, demonstrating the effectiveness of the company's innovations in AI to attract users and enhance market competitiveness.
- Investor Attention: Alphabet's stock has surged 130% over the past year, currently trading at a P/E ratio of 31.3, slightly below the Nasdaq-100's 32.4, indicating relative valuation attractiveness, with expectations that the earnings report will further drive stock price increases.
See More
Google's AI Drives Accelerating Revenue Growth
- Accelerating Revenue Growth: Google Search achieved a record $63.1 billion in revenue for Q4 2025, reflecting a 17% year-over-year increase, marking the third consecutive quarter of accelerating growth, showcasing the effectiveness of AI features and strong market demand.
- Strong Cloud Performance: Google Cloud generated $17.7 billion in revenue during the same quarter, up 48% year-over-year, and ended 2025 with a staggering $240 billion order backlog, which is a 55% increase from three months prior, indicating potential for even faster revenue growth ahead.
- AI Mode Enhances Engagement: The new AI Mode in Google Search has tripled the average length of queries, significantly boosting user engagement, which indicates the company's successful AI transformation and may further solidify its market leadership.
- Attractive Stock Valuation: Despite a 130% rise in Alphabet's stock over the past year, its P/E ratio stands at 31.3, lower than the Nasdaq-100's 32.4, suggesting a relatively undervalued investment opportunity that could attract long-term investors.
See More
Tech Stocks Cheap Yet Strong Earnings Ahead
- Tech Valuation Insights: Barclays strategist Venu Krishna highlights that Big Tech trades at a forward P/E of about 26 times, which, while a premium to the S&P 500's 21 times, is only in the 14th percentile of relative valuation over the past decade, indicating a potential undervaluation of tech stocks.
- Strong Earnings Season: So far, over 80 companies in the S&P 500 have reported earnings, with nearly 85% exceeding expectations, suggesting increasing market confidence in tech stocks, which could drive further stock market gains.
- Market Liquidity Status: Year-to-date, U.S. equity funds have seen inflows exceeding $100 billion, reflecting the resilience of U.S. consumers and strong market demand, which further supports tech stock performance.
- Future Market Outlook: Krishna forecasts the S&P 500 to reach 7,650 by year-end, implying an 8.3% upside from Tuesday's close, indicating continued optimism in the market despite geopolitical uncertainties.
See More
Boeing and GE Vernova Report Strong Earnings, Market Rebounds
- Boeing's Strong Earnings: Boeing's first-quarter results exceeded expectations with record revenue and profit, achieving the highest backlog levels across its commercial, defense, and services segments, and while free cash flow remains negative, it shows significant improvement from last year, indicating early success of CEO Kelly Ortberg's turnaround strategy.
- GE Vernova's Blowout Performance: GE Vernova reported a significantly better-than-expected first quarter, with shares jumping nearly 8%, as natural gas turbine orders are sold out through 2028, and the electrical grid equipment segment is booming due to surging demand from data centers, highlighting strong market demand driven by AI infrastructure development.
- Capital One's Earnings Miss: Capital One missed earnings and revenue expectations in a noisy quarter, and while Barclays raised its price target to $250, we lowered our target to $255 to reflect concerns over credit card business pressures amid worries about consumer spending.
- Adobe's Stock Buyback Plan: Adobe announced a long-term $25 billion stock buyback plan set to run through 2030, with shares rising nearly 3% on the news, demonstrating the company's confidence in future growth despite facing challenges from AI disruptions this year.
See More
Google Unveils Next-Gen TPU Processors at Cloud Next 2026
- Next-Gen TPU Launch: Google unveiled two eighth-generation tensor processing units (TPUs) at the 2026 Cloud Next event, with TPU 8t designed for training AI models and TPU 8i for inference, highlighting Google's ongoing innovation in AI computing.
- Significant Performance Boost: A single TPU 8t superpod scales to 9,600 chips and two petabytes of shared high-bandwidth memory, with double the interchip bandwidth of the previous generation, greatly enhancing training efficiency for AI models to meet soaring computational demands.
- Virgo Network Introduction: Google introduced the Virgo Network to unify multiple data centers, addressing traditional networks' limitations in handling exponentially growing foundational model parameters, thereby driving advancements in machine learning for the next decade.
- Accelerated AI Investment: Google Cloud's paying Gemini Enterprise users increased by 40% quarter-over-quarter in Q1, while approximately 75% of new code produced internally is AI-generated, reflecting the surge in demand for AI computing and Google's leadership in the industry.
See More
Google Cloud Partners with Thinking Machines Labs for AI Infrastructure
- Agreement Signed: Google Cloud has inked a new agreement with Thinking Machines Labs to provide expanded access to its Nvidia-powered AI infrastructure, marking a significant collaboration in the AI sector.
- Innovative Technology Application: Thinking Machines Labs will utilize A4X Max with Blackwell architecture, becoming one of the first Google Cloud customers to leverage Nvidia's GB300 NVL72, enhancing the development of its flagship product, Tinker.
- Performance Enhancement: By integrating high-performance compute, fast storage, and automated remediation, researchers at Thinking Machines noted that Google Cloud's AI Hypercomputer has enabled them to achieve record speeds, significantly improving product development efficiency.
- Strategic Investment Value: Although the terms of the deal were not disclosed, TechCrunch reported that this multi-billion dollar agreement underscores Google Cloud's strong investment intent and market potential in the AI infrastructure space.
See More
Alphabet Set to Release Q1 2026 Earnings Amid AI Growth
- Search Business Growth: Google Search's advertising segment, which accounts for over half of Alphabet's revenue, achieved a record $63.1 billion in Q4 2025, reflecting a 17% year-over-year increase, indicating significant user engagement boosts from AI features, with expectations for this momentum to continue into Q1 2026.
- Surge in Cloud Orders: Google Cloud generated $17.7 billion in revenue in Q4 2025, up 48% year-over-year, and ended 2025 with a staggering $240 billion order backlog, a 55% increase from three months prior, suggesting substantial future revenue growth potential.
- Enhanced AI Features: The newly introduced AI Mode in Google Search has increased average query lengths by three times, significantly boosting user interaction, demonstrating the effectiveness of the company's innovations in AI to attract users and enhance market competitiveness.
- Investor Attention: Alphabet's stock has surged 130% over the past year, currently trading at a P/E ratio of 31.3, slightly below the Nasdaq-100's 32.4, indicating relative valuation attractiveness, with expectations that the earnings report will further drive stock price increases.
See More
Google's AI Drives Accelerating Revenue Growth
- Accelerating Revenue Growth: Google Search achieved a record $63.1 billion in revenue for Q4 2025, reflecting a 17% year-over-year increase, marking the third consecutive quarter of accelerating growth, showcasing the effectiveness of AI features and strong market demand.
- Strong Cloud Performance: Google Cloud generated $17.7 billion in revenue during the same quarter, up 48% year-over-year, and ended 2025 with a staggering $240 billion order backlog, which is a 55% increase from three months prior, indicating potential for even faster revenue growth ahead.
- AI Mode Enhances Engagement: The new AI Mode in Google Search has tripled the average length of queries, significantly boosting user engagement, which indicates the company's successful AI transformation and may further solidify its market leadership.
- Attractive Stock Valuation: Despite a 130% rise in Alphabet's stock over the past year, its P/E ratio stands at 31.3, lower than the Nasdaq-100's 32.4, suggesting a relatively undervalued investment opportunity that could attract long-term investors.
See More
Tech Stocks Cheap Yet Strong Earnings Ahead
- Tech Valuation Insights: Barclays strategist Venu Krishna highlights that Big Tech trades at a forward P/E of about 26 times, which, while a premium to the S&P 500's 21 times, is only in the 14th percentile of relative valuation over the past decade, indicating a potential undervaluation of tech stocks.
- Strong Earnings Season: So far, over 80 companies in the S&P 500 have reported earnings, with nearly 85% exceeding expectations, suggesting increasing market confidence in tech stocks, which could drive further stock market gains.
- Market Liquidity Status: Year-to-date, U.S. equity funds have seen inflows exceeding $100 billion, reflecting the resilience of U.S. consumers and strong market demand, which further supports tech stock performance.
- Future Market Outlook: Krishna forecasts the S&P 500 to reach 7,650 by year-end, implying an 8.3% upside from Tuesday's close, indicating continued optimism in the market despite geopolitical uncertainties.
See More
Boeing and GE Vernova Report Strong Earnings, Market Rebounds
- Boeing's Strong Earnings: Boeing's first-quarter results exceeded expectations with record revenue and profit, achieving the highest backlog levels across its commercial, defense, and services segments, and while free cash flow remains negative, it shows significant improvement from last year, indicating early success of CEO Kelly Ortberg's turnaround strategy.
- GE Vernova's Blowout Performance: GE Vernova reported a significantly better-than-expected first quarter, with shares jumping nearly 8%, as natural gas turbine orders are sold out through 2028, and the electrical grid equipment segment is booming due to surging demand from data centers, highlighting strong market demand driven by AI infrastructure development.
- Capital One's Earnings Miss: Capital One missed earnings and revenue expectations in a noisy quarter, and while Barclays raised its price target to $250, we lowered our target to $255 to reflect concerns over credit card business pressures amid worries about consumer spending.
- Adobe's Stock Buyback Plan: Adobe announced a long-term $25 billion stock buyback plan set to run through 2030, with shares rising nearly 3% on the news, demonstrating the company's confidence in future growth despite facing challenges from AI disruptions this year.
See More
Google Unveils Next-Gen TPU Processors at Cloud Next 2026
- Next-Gen TPU Launch: Google unveiled two eighth-generation tensor processing units (TPUs) at the 2026 Cloud Next event, with TPU 8t designed for training AI models and TPU 8i for inference, highlighting Google's ongoing innovation in AI computing.
- Significant Performance Boost: A single TPU 8t superpod scales to 9,600 chips and two petabytes of shared high-bandwidth memory, with double the interchip bandwidth of the previous generation, greatly enhancing training efficiency for AI models to meet soaring computational demands.
- Virgo Network Introduction: Google introduced the Virgo Network to unify multiple data centers, addressing traditional networks' limitations in handling exponentially growing foundational model parameters, thereby driving advancements in machine learning for the next decade.
- Accelerated AI Investment: Google Cloud's paying Gemini Enterprise users increased by 40% quarter-over-quarter in Q1, while approximately 75% of new code produced internally is AI-generated, reflecting the surge in demand for AI computing and Google's leadership in the industry.
See More
