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Alphabet (GOOG) (GOOGL) stock has delivered significant gains, climbing 66% in 2025 and comfortably outperforming many of its Magnificent Seven peers. This surge reflects growing investor confidence in Google’s ability to translate its artificial intelligence (AI) capabilities into durable growth, particularly as competition in AI intensifies.
A key reason behind the stock’s rally is renewed confidence in Google’s AI strategy. The company’s steady progress in AI, especially the launch of Gemini 3, has strengthened Alphabet’s competitive positioning, easing concerns that Google was falling behind and positioning the company as a serious, competitive force.