Following what was an impressive year for the stock market in 2024, Alphabet Inc (GOOGL) is hoping to be a leader in the NASDAQ in 2025. Last year, the stock climbed around 35%. Alphabet made several innovations in technology, as well as quality investments that may bring profit this new year. Out of the other big NASDAQ options out there, GOOGL could be the top choice for investors if it follows its performance last year.
In Q3 2024, the company demonstrated an increased demand for its search and cloud services, due to the advancements in AI. With the AI arms race looking to boost several stocks, Alphabet GOOGL has its eyes on joining the $3 trillion market cap club. Currently, Nvidia (NVDA), Apple (APPL), and Microsoft (MSFT) are the only members of the exclusive club. However, that is likely to change, as analysts are projecting a bigger, more competitive year in the tech industry. Its ongoing investments in AI, which can be highlighted by the Gemini models integrated across its products, position it for long-term growth, according to experts.
Alphabet’s AI Outreach to Propel it Beyond Other NASDAQ Stocks in 2025
Furthermore, Alphabet Inc. is expanding its reach in AI in 2025 with new partnerships. Specifically, Semiconductor design company Synaptics recently unveiled a partnership with Google to advance artificial intelligence capabilities. Synaptics announced the companies would collaborate on enhancing edge AI for the Internet of Things, or IoT, by combining Google’s machine learning core with Synaptics’ Astra hardware and open-source software. The effort is intended to foster the development of AI devices that can process vision, voice, and other sensory modalities.
CEO Sundar Pichai noted that AI solutions are enhancing product adoption among existing customers, attracting new clients, and securing larger contracts. He outlined plans to accelerate AI product launches in 2025 and emphasized the potential of the Gemini AI model to reach 500 million users. Gemini 2.0 Flash is now widely available to developers. With AI expected to drive a projected $200 billion market by 2026, Alphabet’s focus on AI innovation solidifies its competitive edge compared to other NASDAQ stock options.
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Alphabet currently has a market cap of $2.32 trillion. $1.3 trillion asset manager Morgan Stanley predicted the feat to happen this year. Indeed, they expect Google’s parent company will surpass the $3 trillion mark before the end of 2025. Specifically, they note a 16.5% projected increase in annual earnings as the driving factor. With big moves in automotive tech and AI, as well as improved numbers each quarter in 2025, Alphabet (GOOGL) stock could fall under the radar as a great NASDAQ choice this year.
