Alphabet Partners with Apple, Projected $1 Billion Annual AI Revenue Boost
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50m ago
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Source: Fool
- AI Market Leadership: Alphabet's Google Gemini has increased its monthly active users from 400 million to 650 million over the past six months, making it the second most popular chatbot after ChatGPT, with a partnership with Apple projected to generate an additional $1 billion annually, further solidifying its leadership in the AI sector.
- Strong Financial Performance: Alphabet reported $97.7 billion in net income and $50 billion in free cash flow in the first nine months of 2025, demonstrating its profitability and growth potential in the AI market, making it an attractive stock for investors to consider buying now.
- Surging Memory Demand: Micron's sales of DRAM and NAND flash memory surged 56% in the first quarter to $13.6 billion, with adjusted earnings per share soaring 167% to $4.78, reflecting strong demand from AI data centers, as management noted the company is
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 330.540
Low
279.00
Averages
338.25
High
390.00
Current: 330.540
Low
279.00
Averages
338.25
High
390.00
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.
