Alphabet Stock— Alphabet Inc. (NASDAQ: GOOG, GOOGL) is making a strong comeback in 2025 as investor sentiment shifts in its favor, driven by a wave of new AI products and surging performance in Google Cloud.
Stocks of Alphabet climbed to $176.08 on Monday, adding 1.16 points (+0.66%) on the day and continuing a strong upward momentum. The stock has now gained over 13% in the past month, reversing much of its early-year decline.
The renewed investor interest comes on the heels of Google’s major AI push unveiled at its recent developer conference. At the center of this strategy is Gemini, Alphabet’s next-generation large language model powering a growing suite of AI tools—from cinematic video generators and mixed-reality glasses to AI-enhanced search, online shopping, and travel planning.
The company’s AI roadmap now includes consumer tools and premium subscription services like Google AI Pro ($20/month) and the professional-grade AI Ultra plan priced at $250/month.
What’s driving investor confidence is Alphabet’s ability to monetize AI across its massive ecosystem. YouTube, Search, Cloud, and hardware all contribute to a self-reinforcing AI loop that enhances user experience and grows ad revenue.
Google Cloud alone generated $12.26 billion last quarter, with robust profit margin expansion, highlighting Alphabet’s position as a backbone provider for the AI industry. Meanwhile, AI integration is also helping fuel content creation on YouTube and improve product discovery across Google platforms.
Despite concerns that AI might cannibalize traditional Search revenue, analysts see Alphabet’s innovation as additive. The company is expected to surpass $100 billion in non-Search-related annual revenue soon, thanks to explosive growth in Cloud, subscriptions, and hardware sales.
Alphabet’s financials remain strong: net income has jumped 250% over five years to $111 billion, the stock trades at a P/E ratio under 19, and management continues to reward stockholders with stock buybacks and a 0.5% dividend.
Stocks have returned nearly 144% over the past five years and more than 522% since inception, underlining the company’s long-term resilience.
As the AI arms race accelerates, Alphabet’s unmatched infrastructure, massive user base, and aggressive innovation pipeline may give it a lasting edge. For long-term investors, this recent surge in Alphabet stock could be a sign that the best is yet to come.