Alphabet Soars in AI Arena with a 62% Stock Surge
Alphabet, Google’s parent company, has emerged as the undisputed leader among Big Tech firms in 2025, boasting a stock surge of approximately 62% while rivals grapple to show returns on their hefty AI investments.
The performance starkly contrasts with other tech giants: Microsoft with a gain of only 13%, Apple at 12%, Meta at 10%, and Amazon with a disappointing 1%. Interestingly, the S&P 500 index is tracking toward a 16% gain for the year, implying that most Big Tech companies are actually underperforming the broader market.
Google’s dominance is attributed to its comprehensive AI ecosystem, which integrates robust AI models like Gemini with proprietary Tensor Processing Units (TPUs) and the ability to deploy AI across a variety of products with enormous user bases—from Search and Gmail to YouTube and Android. In addition, Google is actively striving to lessen its reliance on Nvidia’s CUDA platform by developing TorchTPU, thereby making its chips more compatible with PyTorch.
Analysts point out that Google’s price-to-earnings ratio of around 30 remains at similar levels to Meta and Amazon, and significantly lower than Microsoft and Apple. This insinuates that the market hasn’t fully accounted for Google’s potential to convert its AI leadership into revenue growth, suggesting a possible further upside for the stock.
Source: Fortune