Alphabet shares surged roughly 65% over 2025 after the company resolved major investor concerns on three fronts: its AI leadership position, the resilience of Google Search, and the outcome of its U.S. antitrust trial. In April, the stock traded at just 14 times forward earnings. By September, after the court ruled that Alphabet would not have to spin off any business units, the multiple had risen to under 20x forward earnings. Today, with the forward P/E near 30x, Alphabet now sits in line with other large-cap tech peers, suggesting that although it no longer appears undervalued, its ability to replicate last year’s gains is limited.

Investors will closely monitor Google Search’s integration of AI Overviews and AI Mode, as well as the adoption trajectory of the Gemini generative AI model. Another potential growth vector lies in selling custom Tensor Processing Units (TPUs) to external customers: reports indicate Alphabet is in advanced talks to supply a large TPU cluster to Meta Platforms, a move that could challenge NVIDIA’s dominance in AI accelerators and unlock a new high-margin revenue stream. Google Cloud remains a vital engine, having grown revenue by more than 30% year-over-year in each of the past two years; maintaining or accelerating that pace will be critical to achieving consensus estimates.

Alphabet holds about 7% of SpaceX, which is targeting a valuation north of $1 trillion in any potential IPO; at that level, Alphabet’s stake would be worth roughly $70 billion. If the company were to monetize part of this position, it could inject significant cash to fund accelerated AI investments. Wall Street analysts project roughly 14% revenue growth for Alphabet in both 2025 and 2026, implying mid-teens EPS gains. While competitors such as NVIDIA may outpace those returns, Alphabet is viewed as a lower-risk way to participate in the AI and cloud markets, offering a balanced risk-reward profile for investors heading into 2026.