Alphabet Stock Performance 2025: Shares Surge 65% as AI Execution Silences Skeptics
Alphabet shares jumped 65% in 2025, marking the best Alphabet stock performance 2025 since the financial crisis. Read how Gemini and cloud growth drove the rally.
The skeptics were wrong. Alphabet just wrapped its best year since the Great Recession, with shares skyrocketing 65% in 2025. This remarkable rally marks the company's strongest performance since 2009, outpacing fellow tech titans like Broadcom (49%) and Nvidia (39%).
Alphabet Stock Performance 2025: The AI Turnaround
It wasn't a smooth ride from the start. In early 2025, investors feared that OpenAI's ChatGPT would dismantle Google's search monopoly. Alphabet's stock hit a yearly low in April, down 18% for the quarter. However, the momentum shifted as Google unleashed a barrage of AI innovations. The Gemini app saw massive adoption, growing its share of generative AI traffic from 5% to 18% in just one year.
Strategic acquisitions played a key role. Google secured top talent from the AI coding startup Windsurf in a $2.4 billion deal, effectively outmaneuvering competitors. Features like 'Nano Banana' went viral, proving that Google could still capture the consumer's imagination in the age of generative media.
Legal Victories and Cloud Dominance
Beyond tech, a pivotal courtroom decision in September provided a massive tailwind. U.S. District Judge Amit Mehta ruled against forcing Alphabet to divest Chrome. This allowed Google to maintain its default status on iPhones, a multibillion-dollar moat that remains intact. Meanwhile, the cloud business hit new heights, signing more $1 billion plus deals in the first three quarters of 2025 than in the previous two years combined.
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