- Technology
Licensing
Amid volatility in the artificial intelligence trade, Google-parent Alphabet (GOOGL) has been on a roll. While the Nasdaq peaked on Oct. 29, the relative strength line of Google stock has improved. GOOGL stock hit an all-time high of 328.83 on Nov. 25 and has surged 69% in 2025. But what's coming in 2026?
Many investors have focused on whether the tech giant will be in the artificial intelligence winners circle. As of now, the answer seems to be yes, although Google may share it with ChatGPT builder OpenAI. Google is among artificial intelligence stocks to watch.
Despite worries over ChatGPT, Google still powers 90% of the world's internet searches. But there's much more to Google's valuation. Alphabet holds self-driving ride-hailing company Waymo, YouTube, the Android operating system, a cloud computing business, quantum computing assets, and a broad range of AI software and chip technologies.
Owing to its artificial intelligence prowess, Google leads the Magnificent Seven in performance in 2025.
Nvidia (NVDA) has advanced 32% in 2025 while Microsoft (MSFT) is up 17%. Among other Magnificent 7 stocks: Apple (AAPL) has climbed 11%, Meta has gained 10%, Amazon (AMZN) is up 6% and Tesla (TSLA) is up 13%.
The valuation of GOOGL stock now tops $3.8 trillion, behind only Nvidia and Apple.
What's clear is that AI has become an important battleground after the debut of OpenAI's ChatGPT in late 2022.
Alphabet is leveraging its artificial intelligence capabilities across the board — in internet search, in digital advertising, in cloud computing, in Waymo, in YouTube, in Gmail and Workspace, in apps such as Maps and more.
Berkshire Hathaway Builds Google Stake
Some closely followed investors have taken notice. Berkshire Hathaway (BRKB) recently disclosed a new position in Alphabet valued at approximately $4.3 billion at the end of the third quarter.
In search, new competition from OpenAI's ChatGPT, Perplexity and others has forced Google to overhaul its search results. ChatGPT delivers answers to search queries, while Google's business model has been based on providing weblinks.
Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format. Google says AI Overviews now has over 1.5 billion monthly active users.
Google recently introduced its newest artificial intelligence system: Gemini 3. It's an updated version of Google's large language model. Google has improved the chatbot's ability to code, search and create images. Gemini 3 will battle against OpenAI's GPT-5 and Anthropic's Claude family in reasoning performance reviews.
OpenAI has been leveraging GPT-5 in a recently introduced a web browser. Meanwhile, Google's Gemini app has more than 650 million monthly average users. But ChatGPT has more than 800 million weekly active users, including many consumers with subscriptions.
Going forward, Google will push users of its Chrome browser toward Gemini.
Google Q3 Earnings Beat Amid Cloud Boost
In addition, Google earnings for the quarter ending Sept. 30 topped expectations. Meanwhile, Google increased its 2025 capital spending estimate by 8% to $92 billion at the midpoint, up from prior guidance of $85 billion. Most capital spending goes toward artificial intelligence cloud infrastructure.
In Q3, cloud-computing revenue climbed 33.5% to $15.16 billion versus estimates of $14.70 billion. Google Cloud's order backlog jumped 82% from a year earlier to $155 billion.
See The Latest Updates To IBD Watchlists
Google is leveraging artificial intelligence prowess in models, chips, agents and data security to grow its cloud computing business, said CEO Thomas Kurian, said at an industry technology conference in September. New customers include OpenAI, Meta Platforms (META), and Anthropic.
One view is that Google's home-grown AI accelerator chips, called TPUs, are becoming a stronger rival to Nvidia (NVDA). Reports that Google could sell AI accelerator chips to Meta and others provided a recent boost.
In March, Alphabet agreed to buy fast growing cybersecurity firm Wiz in an all-cash $32 billion deal. One view is that the Wiz purchase could boost Google's cloud computing market share versus Amazon and Microsoft (MSFT)
Google Stock: Antitrust Worries
Meanwhile, anti-trust worries have abated somewhat.
In early September, Google stock rallied when a federal judge ruled that no asset divestitures will be required as part of remedies in an antitrust case involving the tech giant's internet search business.
After the search ruling, Google introduced new Gemini integration across its Chrome browser for all U.S. desktop users. Chrome now features native Gemini access via a dedicated button, allowing users to analyze information and content without switching windows.
However, a digital advertising antitrust case could turn out differently. In April, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia ruled that Google has used classic monopoly-building tactics to dominate online advertising. The Department of Justice had claimed Google's dominance of the digital ad market has damaged advertisers and content creators.
The IBD Methodology: How To Invest In Stocks While Managing Risks
In September, Brinkema held hearings to discuss possible remedies. The government has stated that Google should sell off its Google Ad Manager, which includes the company's publisher ad server and its ad exchange. The ad servers and the market for ad exchanges sit between buyers and sellers. Brinkema is expected to issue a remedies ruling in early 2026.
Waymo Upside
Waymo on Nov. 12 said it will expand its self-driving taxi service to highways in three U.S. cities — Los Angeles, Phoenix and San Francisco. In S.F., Waymo vehicles will take passengers to San Jose International Airport.
Meanwhile, Waymo has brought in a new chief financial officer, Steve Fieler.
Also, Waymo has partnered with Via Transportation (VIA) to integrate its ride-hailing service directly into public transit networks that use Via's software. It will first be tested in Chandler, Ariz.
On Nov. 3, Waymo announced that it will roll out ride-hailing services in San Diego and Las Vegas in 2026 as well as Detroit. In Detroit, Waymo will test its autonomous vehicles in snowy weather. Earlier, it announced similar plans for Washington D.C.
In late 2024, Waymo closed a $5.6 billion funding round, including Google and previous investors.
However, Wall Street has yet to price in Waymo's momentum in the valuation of Google stock.
GOOGL Stock: Is It A Buy Or Sell Now?
Also, the Relative Strength Rating of GOOGL stock currently stands at 95 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Google stock holds an Accumulation/Distribution Rating of A-plus. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Further, GOOGL stock holds an IBD Composite Rating of 99 out of a best possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, GOOGL stock has a 21-day ATR of 3.71. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs of up to 8%.Also, as of Dec. 1, GOOGL stock needs to form a new base to be actionable.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Want To Trade Options? Try Out These Strategies
Monitor IBD's "Breaking Out Today" List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
Build Custom Stock Screens With MarketSurge
Join IBD Live For Stock Ideas Each Morning Before The Open
Related news
Elon Musk Says These Mag 7 Stocks Not Named Tesla Are Set To Dominate
12/01/2025 Elon Musk sees this Mag 7 stock as being "extremely valuable in the future" as AI reshapes the world.
12/01/2025 Elon Musk sees this Mag 7 stock as being "extremely...
Today's Spotlight
MarketSurge Cyber Week Sale
This week, save over 80% on MarketSurge—get 2 months of unlimited access for only $59.95.Free webinar: Prepare Your 2026 Portfolio
Learn how to read key market signals and position your portfolio for the upcoming year.Join MarketDiem for $20/Year
Simple, quick, actionable. Invest like a pro with IBD’s newsletter for $20/year!More News
-
President Donald Trump said Sunday that he's picked his next Federal Reserve chairman and will make his announcement soon. (Chip Somodevilla/Shutterstock)
Trump Says He's Picked Next Fed Chief. Here's Who Markets Expect. -
Elon Musk Says These Mag 7 Stocks Not Named Tesla Are Set To Dominate
-
A rocky month for AI stocks spooked by fears of a bubble has triggered a shakeout among the hyperscalers. (© Gary Neill)
Flight Of The Hyperscalers. How AI Sent Amazon, Google, Oracle, Microsoft, Meta On A Wild Ride
