Nvidia Beats Microsoft To Be The Biggest Of The Big: Here Are 6 ETFs Riding Its Trillion-Dollar Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2025
0mins
Should l Buy GOOG?
Source: Benzinga
Nvidia's Market Position: Nvidia has reclaimed its status as the world's most valuable publicly traded company with a market cap of $3.45 trillion, driven by strong demand for its chips and data center hardware, despite geopolitical challenges.
Impact on ETFs: The surge in Nvidia's stock is positively affecting various AI and semiconductor ETFs, many of which have significant allocations to Nvidia, reflecting a broader trend towards investing in AI infrastructure.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 379.640
Low
255.00
Averages
336.08
High
400.00
Current: 379.640
Low
255.00
Averages
336.08
High
400.00
About GOOG
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.
Analysis of Investment Prospects for Alphabet Inc. Stock
- AI Infrastructure Investment: Alphabet Inc. plans to invest $175 billion to $185 billion in capital expenditures in 2026, nearly doubling 2025 levels, aimed at expanding AI data centers and proprietary chip infrastructure, thereby solidifying its competitive edge in the AI sector.
- Strong Cloud Business Growth: In Q4 2025, Google Cloud revenue surged 48% to $17.7 billion, with operating income exceeding $5.3 billion, driven by strong enterprise demand for Gemini 3 and AI solutions, further enhancing the company's profitability.
- Robust Financial Performance: Alphabet achieved $402.8 billion in revenue and $132.17 billion in net income for FY 2025, with its search business demonstrating resilience by growing 17% in Q4 despite concerns over generative AI, showcasing its market strength.
- Hedge Fund Favorability: By the end of Q4 2025, 288 hedge fund portfolios held GOOGL stock, a significant increase from 243 in the previous quarter, reflecting market confidence in its long-term growth potential.
See More
Google Develops New AI Assistant 'Remy' to Compete with OpenClaw
- New AI Assistant Development: Google is developing an AI assistant codenamed 'Remy' to compete with OpenClaw, currently being tested in an employee-only version of the Gemini app, showcasing Google's ongoing innovation in the AI sector.
- Enhanced Functionality: Described as a 24/7 personal agent, Remy can take actions on behalf of users in work, school, and daily life, not just answering questions or generating content, which enhances user experience and may attract more users to the Gemini app.
- Integration Potential: The assistant's ability to integrate with other Google services indicates a strategic intent to build a more comprehensive ecosystem, further solidifying Google's leadership position in the AI market.
- Market Response: As demand for AI assistants rises, Google's initiative may stimulate CPU demand, reflecting the semiconductor industry's focus and investment potential in intelligent assistant technologies.
See More
Google in Talks with Private Equity Firms for AI Access
- AI Tool Collaboration: Google is reportedly in discussions with private equity firm EQT AB to sell AI tools to multiple companies, aiming to expand its market share and enhance competitiveness.
- Stock Price Increase: Following reports of talks with Blackstone and KKR, Alphabet's (GOOGL) stock inched higher, reflecting market optimism regarding the potential applications of its AI models.
- Cloud Business Expansion: Strong growth in Google's cloud business has led to its best performance in April 2023, with a year-to-date stock increase of 23.4%, positioning it to potentially surpass Nvidia as the world's most valuable company.
- Private Equity Investment Trends: Top private equity firms like Blackstone and KKR are actively investing in data centers and energy management companies to bolster their influence in the rapidly growing AI sector, demonstrating their commitment to AI technology and its future potential.
See More
Nvidia Shares Surge Due to AI Collaborations
- Stock Surge: Nvidia's shares rose 14.4% in March, according to S&P Global Market Intelligence, driven by both general market enthusiasm and specific company catalysts, reflecting investor confidence in its growth prospects.
- Collaborative Innovation: At the Google Cloud Next event, Nvidia and Alphabet announced their collaboration on the A5X AI infrastructure, which reduces the cost per token for AI inference by 90% and increases speed by tenfold, likely attracting more companies to adopt AI technology and further expanding Nvidia's market share.
- Quantum Computing Advances: Nvidia released the open-source AI model Ising, which enhances efficiency in quantum computing, achieving 2.5 times faster and 3 times more accurate quantum error correction than existing methods, a breakthrough that will propel future developments in quantum computing and strengthen Nvidia's competitive edge in high-tech sectors.
- Optimistic Market Outlook: While these announcements are not game-changers, they provide incremental improvements within the AI ecosystem, indicating that ongoing adoption of AI could lead to new upward momentum for Nvidia's stock, especially following Palantir Technologies' release of its best financial report in history, which further supports the growth trend in AI adoption.
See More
Oracle's AI Business Sees Strong Growth Amid Concerns
- Strong Financial Performance: Oracle reported total revenue of $17.2 billion for Q3 FY2026, marking a 22% year-over-year increase, with cloud revenue surging 44% to $8.9 billion, highlighting robust demand in AI infrastructure services, particularly with infrastructure-as-a-service growing 84% year-over-year.
- Record Contract Backlog: Oracle's remaining performance obligations (RPO) reached $553 billion at the end of the quarter, more than quadrupling year-over-year and increasing by $29 billion from the previous quarter, indicating strong market demand in the AI sector that exceeds its current market capitalization of $525 billion.
- Improved Profitability: The company's gross margin stood at 32%, surpassing the 30% guidance, while non-GAAP earnings per share rose 21% to $1.79, marking the first quarter since 2009 where both organic revenue and adjusted EPS grew by over 20%.
- Debt Financing Risks: Despite Oracle's AI capacity expansion being supported by customer prepayments, its long-term debt of approximately $125 billion and negative cash flow raise investor concerns, particularly regarding its reliance on a $300 billion compute contract with OpenAI, which could impact future financial stability.
See More
Nvidia Stock Rebounds with Significant AI Advancements
- Stock Rebound: Nvidia's stock surged 14.4% in March, reversing earlier declines this year, reflecting strong market confidence in its AI technology and suggesting potential for future growth.
- Collaborative Innovation: At the Google Cloud Next event, Nvidia and Alphabet announced their partnership to launch the A5X AI infrastructure, achieving a 90% reduction in cost per token and 10 times faster speeds, which is expected to attract more companies to adopt AI technology and further solidify Nvidia's market leadership.
- Quantum Computing Breakthrough: Nvidia released its open-source AI model Ising, enhancing quantum processor calibration capabilities, with quantum error correction decoding being 2.5 times faster and 3 times more accurate, marking significant progress in quantum computing that could drive broader technology adoption.
- Optimistic Market Outlook: With Nvidia's stock priced at less than 24 times forward earnings, the ongoing AI revolution suggests a positive market outlook, potentially leading to further stock price increases as investor confidence grows.
See More
Analysis of Investment Prospects for Alphabet Inc. Stock
- AI Infrastructure Investment: Alphabet Inc. plans to invest $175 billion to $185 billion in capital expenditures in 2026, nearly doubling 2025 levels, aimed at expanding AI data centers and proprietary chip infrastructure, thereby solidifying its competitive edge in the AI sector.
- Strong Cloud Business Growth: In Q4 2025, Google Cloud revenue surged 48% to $17.7 billion, with operating income exceeding $5.3 billion, driven by strong enterprise demand for Gemini 3 and AI solutions, further enhancing the company's profitability.
- Robust Financial Performance: Alphabet achieved $402.8 billion in revenue and $132.17 billion in net income for FY 2025, with its search business demonstrating resilience by growing 17% in Q4 despite concerns over generative AI, showcasing its market strength.
- Hedge Fund Favorability: By the end of Q4 2025, 288 hedge fund portfolios held GOOGL stock, a significant increase from 243 in the previous quarter, reflecting market confidence in its long-term growth potential.
See More
Google Develops New AI Assistant 'Remy' to Compete with OpenClaw
- New AI Assistant Development: Google is developing an AI assistant codenamed 'Remy' to compete with OpenClaw, currently being tested in an employee-only version of the Gemini app, showcasing Google's ongoing innovation in the AI sector.
- Enhanced Functionality: Described as a 24/7 personal agent, Remy can take actions on behalf of users in work, school, and daily life, not just answering questions or generating content, which enhances user experience and may attract more users to the Gemini app.
- Integration Potential: The assistant's ability to integrate with other Google services indicates a strategic intent to build a more comprehensive ecosystem, further solidifying Google's leadership position in the AI market.
- Market Response: As demand for AI assistants rises, Google's initiative may stimulate CPU demand, reflecting the semiconductor industry's focus and investment potential in intelligent assistant technologies.
See More
Google in Talks with Private Equity Firms for AI Access
- AI Tool Collaboration: Google is reportedly in discussions with private equity firm EQT AB to sell AI tools to multiple companies, aiming to expand its market share and enhance competitiveness.
- Stock Price Increase: Following reports of talks with Blackstone and KKR, Alphabet's (GOOGL) stock inched higher, reflecting market optimism regarding the potential applications of its AI models.
- Cloud Business Expansion: Strong growth in Google's cloud business has led to its best performance in April 2023, with a year-to-date stock increase of 23.4%, positioning it to potentially surpass Nvidia as the world's most valuable company.
- Private Equity Investment Trends: Top private equity firms like Blackstone and KKR are actively investing in data centers and energy management companies to bolster their influence in the rapidly growing AI sector, demonstrating their commitment to AI technology and its future potential.
See More
Nvidia Shares Surge Due to AI Collaborations
- Stock Surge: Nvidia's shares rose 14.4% in March, according to S&P Global Market Intelligence, driven by both general market enthusiasm and specific company catalysts, reflecting investor confidence in its growth prospects.
- Collaborative Innovation: At the Google Cloud Next event, Nvidia and Alphabet announced their collaboration on the A5X AI infrastructure, which reduces the cost per token for AI inference by 90% and increases speed by tenfold, likely attracting more companies to adopt AI technology and further expanding Nvidia's market share.
- Quantum Computing Advances: Nvidia released the open-source AI model Ising, which enhances efficiency in quantum computing, achieving 2.5 times faster and 3 times more accurate quantum error correction than existing methods, a breakthrough that will propel future developments in quantum computing and strengthen Nvidia's competitive edge in high-tech sectors.
- Optimistic Market Outlook: While these announcements are not game-changers, they provide incremental improvements within the AI ecosystem, indicating that ongoing adoption of AI could lead to new upward momentum for Nvidia's stock, especially following Palantir Technologies' release of its best financial report in history, which further supports the growth trend in AI adoption.
See More
Oracle's AI Business Sees Strong Growth Amid Concerns
- Strong Financial Performance: Oracle reported total revenue of $17.2 billion for Q3 FY2026, marking a 22% year-over-year increase, with cloud revenue surging 44% to $8.9 billion, highlighting robust demand in AI infrastructure services, particularly with infrastructure-as-a-service growing 84% year-over-year.
- Record Contract Backlog: Oracle's remaining performance obligations (RPO) reached $553 billion at the end of the quarter, more than quadrupling year-over-year and increasing by $29 billion from the previous quarter, indicating strong market demand in the AI sector that exceeds its current market capitalization of $525 billion.
- Improved Profitability: The company's gross margin stood at 32%, surpassing the 30% guidance, while non-GAAP earnings per share rose 21% to $1.79, marking the first quarter since 2009 where both organic revenue and adjusted EPS grew by over 20%.
- Debt Financing Risks: Despite Oracle's AI capacity expansion being supported by customer prepayments, its long-term debt of approximately $125 billion and negative cash flow raise investor concerns, particularly regarding its reliance on a $300 billion compute contract with OpenAI, which could impact future financial stability.
See More
Nvidia Stock Rebounds with Significant AI Advancements
- Stock Rebound: Nvidia's stock surged 14.4% in March, reversing earlier declines this year, reflecting strong market confidence in its AI technology and suggesting potential for future growth.
- Collaborative Innovation: At the Google Cloud Next event, Nvidia and Alphabet announced their partnership to launch the A5X AI infrastructure, achieving a 90% reduction in cost per token and 10 times faster speeds, which is expected to attract more companies to adopt AI technology and further solidify Nvidia's market leadership.
- Quantum Computing Breakthrough: Nvidia released its open-source AI model Ising, enhancing quantum processor calibration capabilities, with quantum error correction decoding being 2.5 times faster and 3 times more accurate, marking significant progress in quantum computing that could drive broader technology adoption.
- Optimistic Market Outlook: With Nvidia's stock priced at less than 24 times forward earnings, the ongoing AI revolution suggests a positive market outlook, potentially leading to further stock price increases as investor confidence grows.
See More
