Alphabet Projects 65% Revenue Growth in 2025, Outperforming Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
0mins
Should l Buy GOOGL?
Source: Fool
- Significant Revenue Growth: Alphabet is projected to achieve over 65% revenue growth in 2025, driven by robust performance in its advertising business and Google Cloud, showcasing the company's competitive edge and sustained growth potential in the AI market.
- Cloud Services Boost: Google Cloud's revenue surged 34% in the latest quarter, primarily due to skyrocketing demand for AI infrastructure and generative AI services, providing strong support for Alphabet's overall performance.
- First $100 Billion Quarter: Alphabet reached its first-ever $100 billion quarter in its latest earnings report, marking a significant milestone in its advertising and cloud services success, indicating vast growth opportunities in the AI market ahead.
- Antitrust Case Positive Outcome: A U.S. judge ruled that Alphabet would not be required to break up Google, alleviating market concerns about the company's future and boosting investor confidence, which could lead to a rise in stock price.
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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: 331.250
Low
279.00
Averages
338.25
High
390.00
Current: 331.250
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.
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- Surge in Trading Volume: Trading volume reached 87.1 million shares, about 136% above the three-month average of 36.8 million shares, reflecting heightened investor interest in the company's future prospects.
- Earnings Beat Expectations: In Q4, Alphabet reported sales and earnings per share growth of 18% and 31%, respectively, surpassing Wall Street's consensus, with Google Search and YouTube showing steady growth rates of 17% and 9% each.
- Cloud Business Highlight: The cloud backlog surged 55% sequentially, more than doubling from Q4 2024, indicating strong demand in the cloud services sector, while management's confidence in AI-related spending continues to grow.
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- Surge in Trading Volume: Trading volume reached 87.1 million shares, about 136% above the three-month average of 36.8 million shares, reflecting heightened investor interest in the company's future prospects.
- Earnings Beat Expectations: In Q4, Alphabet reported sales and earnings per share growth of 18% and 31%, respectively, surpassing Wall Street's consensus, with Google Search and YouTube showing steady growth rates of 17% and 9% each.
- Cloud Business Highlight: The cloud backlog surged 55% sequentially, more than doubling from Q4 2024, indicating strong demand in the cloud services sector, while management's confidence in AI-related spending continues to grow.
See More
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- Market Share Growth: Alphabet's Gemini AI is rapidly capturing market share, increasing from 7% in 2022 to 21% in 2023, and is expected to surpass ChatGPT this year, demonstrating strong competitiveness in the generative AI space.
- Hardware Competitive Advantage: Alphabet's TPU chip serves as an alternative to Nvidia's GPUs and is being extensively utilized by Anthropic, which is likely to create additional hardware demand for Alphabet and further solidify its market position.
- Strong Financial Performance: Alphabet's revenue is projected to exceed $400 billion in 2025, reflecting a 15% year-over-year increase, while net income is expected to rise by 32% to $132.1 billion, showcasing its profitability and leadership in the AI sector.
- Significant Capital Expenditure Increase: Alphabet plans to double its capital expenditures to between $175 billion and $185 billion in 2026, indicating a strong commitment to long-term investments in AI, which is expected to further drive market expansion and technological innovation.
See More
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- Necessity of Human Skills: Daniela Amodei, co-founder of AI startup Anthropic, emphasizes that skills like communication, empathy, and critical thinking will be crucial for career success, indicating that AI will augment rather than replace human jobs.
- Collaboration with AI: Amodei highlights that AI can enhance job quality, suggesting that the combination of humans and AI creates more meaningful, challenging, and high-productivity work, reflecting the positive role of AI in the workplace.
- Changing Hiring Standards: Anthropic prioritizes human traits such as communication skills, emotional intelligence, curiosity, and compassion in hiring, demonstrating the company's focus on these unique abilities and indicating a future workplace increasingly reliant on them.
- Potential Risks of AI: Despite the growing influence of AI, experts warn that heavy reliance on it could weaken human skills, leading to declines in critical thinking abilities, underscoring the importance of maintaining human capabilities amid technological advancements.
See More
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- Market Share Decline: Amazon Web Services (AWS) reported a 20% growth in 2025, significantly trailing behind Google Cloud's 36% and Microsoft's Azure at 39%, indicating a weakening competitive position in the cloud infrastructure market that could impact future leadership.
- Revenue and Profit Comparison: AWS added over $21.2 billion in revenue in 2025, achieving an operating income of $45.6 billion, which is substantially higher than Google Cloud's $13.9 billion and Microsoft's Azure's $19 billion, highlighting AWS's profitability advantage, yet its growth rate lags behind competitors.
- Capital Expenditure Plans: Amazon is targeting $200 billion in capital expenditures for 2025, primarily for AWS and AI workloads, which may lead to negative free cash flow in 2026, but underscores the company's long-term commitment to its cloud business despite potential short-term financial strain.
- Stable Financial Performance: Amazon's quarterly revenue rose 14% to $213.4 billion in 2025, with operating income increasing 18% to $25 billion, indicating strong execution capabilities even as market reactions to its spending plans remain lukewarm, reflecting the company's resilience in financial performance.
See More
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- AI Investment Risks: Oracle and Microsoft face heightened risks due to their $300 billion deal with OpenAI, as market skepticism grows over OpenAI's internal projections of burning through over $100 billion in cash before 2030, potentially undermining investor confidence in AI-related companies.
- Market Divergence: While the bond market adopts a cautious stance on Oracle's outlook, the equity market continues to invest in AI companies, reflecting differing views on the AI sector, which may prompt investors to reassess the value and sustainability of AI firms.
- Alphabet's Advantage: Compared to Oracle and Microsoft, Alphabet has minimal exposure to OpenAI and a stronger financial position, enabling it to better support AI-related capital expenditures, potentially giving it a competitive edge in future market dynamics.
See More
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- Massive Investment Plans: Hyperscale cloud companies like Google, Amazon, and Microsoft are set to invest up to $500 billion in 2023, with Google planning to invest between $175 billion and $185 billion by 2026, significantly exceeding analysts' expectations of $115 billion, indicating a strong demand for AI computing power.
- Strong Demand for Data Centers: Equinix achieved record annualized bookings of $394 million in Q3, a 25% year-over-year increase, closing over 4,400 deals with more than 3,400 customers, which drove an 11% increase in adjusted funds from operations (FFO), reflecting robust demand for its data centers.
- Expansion Strategy: Equinix is advancing 58 major projects globally, including 12 AI-ready xScale data centers, aiming to double its data center capacity by 2029, with the CEO stating that the capacity brought online in the next five years will match that of the past 27 years, showcasing its ambitious expansion plans.
- Increased Capital Expenditure: Under its
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