"Alphabet stock has made a roaring comeback in 2025. Stock for the artificial intelligence ( AI) giant and owner of Google, YouTube, Google Cloud, and Gemini is trading up 31% year to date, which is actually beating the performance of Microsoft and just slightly underperforming Nvidia. Investors are cheering on Alphabet as it keeps putting out new AI innovations that are going viral, helping it catch up to the likes of OpenAI's ChatGPT."
"The ChatGPT competitor only has an estimated 35 million daily users, but it has begun to grow quickly in recent months due to the launch of a new AI image generator, which sent Gemini to the top of the App Store downloads ranking. That app recently fell behind two OpenAI applications, but remains third on the list, which is significantly ahead of its historical ranking. According to Alphabet, users have created hundreds of millions of images with the new Gemini tools already."
Alphabet's stock rose roughly 31% year-to-date in 2025, outpacing Microsoft and slightly trailing Nvidia. The company owns Google, YouTube, Google Cloud, and Gemini and continues releasing AI innovations that attract viral adoption. Despite the rally, Alphabet trades below the S&P 500 average P/E and well below key peers. ChatGPT drew hundreds of millions of weekly and daily users, raising concerns about search disruption. Gemini has grown rapidly after launching an AI image generator, reaching top App Store rankings and enabling users to create hundreds of millions of images. Viral Gemini usage may eventually drive subscriptions and ad revenue as market share shifts.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]