Alphabet's Stock Rises 66% Amid Intensifying AI Market Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
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Source: CNBC
- Stock Surge: Alphabet's stock has surged 66% this year, making it the top performer among the Magnificent Seven, reflecting strong performance in the AI market and a recovery in investor confidence.
- User Growth: The successful launches of Google's Gemini 3 model and Nano Banana Pro have led to a surge in monthly users to 2 billion, boosting investor sentiment and demonstrating the practical applications of AI technology in search engines.
- Cloud Business Performance: Google Cloud achieved record operating margins in Q3, coupled with a favorable ruling in its antitrust case, further solidifying its position in the cloud computing market and indicating future growth potential.
- Infrastructure Investment: With rising demand for AI infrastructure, companies like Western Digital and Seagate have also excelled, with Western Digital's stock up over 290% year-to-date, showcasing the strong momentum driven by AI data center construction.
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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: 336.010
Low
279.00
Averages
338.25
High
390.00
Current: 336.010
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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