Following what was an impressive year for the stock market in 2024, Alphabet Inc (GOOGL) is hoping to be a leader in the market 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. Despite it being a Magnificent-7 stock member, GOOGL isn’t getting as much hype this year as fellow members Nvidia and Amazon. However, the stock could be a top performer in technology, especially in the AI realm.
With the AI arms race looking to boost a number of 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. 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.
Where Can Alphabet (GOOGL) Excel in 2025?
One of Alphabet’s biggest horses in the 2025 race is in the autonomous driving field. Self-driving cars are typically seen as Tesla’s field. However, Alphabet’s Waymo service could make waves this year. Waymo’s business expanded to Miami, FL in a move that could be huge for GOOGL stock in 2025. Moreover, it will begin with human-supervised testing taking place in 2025. Upon any success in this venture, Google could skyrocket in stock value.
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.
With big moves in automotive tech and AI, as well as improved numbers each quarter in 2025, Alphabet stock could fall under the radar as a great Mag-7 investment option.
