Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) stock has been on fire this year, attracting major attention from investors, including Cathie Wood’s ARK Invest. Google stock recently hit new all-time highs, driven by a wave of AI excitement, from Google’s Gemini 3 model to reports that Meta (NASDAQ:META) may rent Google’s AI chips.
GOOGL stock is flirting with a $4 trillion market cap, up roughly 70% year-to-date (YTD). In late November, ARK Invest purchased 174,293 shares worth around $56 million, raising the question: is this momentum buying, or is Google justified at these levels?
AI Drives Google Stock Rally
The key catalyst behind the rally is Google’s push into AI. The company launched Gemini 3, an advanced AI model praised across the tech industry. Salesforce CEO Marc Benioff called it a “leap” beyond ChatGPT, while OpenAI’s Sam Altman and Nvidia’s (NASDAQ:NVDA) Jensen Huang also praised the model.
In addition, Meta is negotiating to spend billions on Google’s AI chips for its data centers. Alphabet plans to supply its TPUs (Tensor Processing Units) to Meta starting in 2027 and may begin renting chips through Google Cloud as early as next year. These chips are optimized for AI workloads, offering lower costs and faster production compared to Nvidia’s chips, creating a new business line for Google and positioning it as a competitor in the AI chip market.
Alphabet Smashes Q3 Earnings Estimates
Alphabet reported a record-breaking Q3, generating $102.36 billion in revenue, up 16% YoY, surpassing analysts’ expectations. Its Google Services group (search, Android, YouTube, ads) contributed $87.05 billion, a 14% increase. YouTube ad sales rose to $10.26 billion, up 15%, while Google Cloud surged 34% to $15.16 billion.
Profitability also impressed investors. Net income climbed to $34.98 billion, up 33% YoY, and diluted EPS reached $2.85, exceeding estimates. Free cash flow for the quarter was $24.5 billion, and Alphabet finished with about $98.5 billion in cash and marketable securities.
CEO Sundar Pichai highlighted the success of Google’s AI rollout, noting Gemini processes 7 billion tokens per minute via API and serves roughly 650 million monthly users. Alphabet plans to raise 2025 capital spending to $91–$93 billion to support cloud demand and continue AI expansion. The company also paid a small quarterly dividend of $0.21 per share.
Analyst Optimism for Google Stock
Wall Street is bullish on Google stock. Goldman Sachs raised its price target to $330, citing 34% cloud growth and strong YouTube and search performance. J.P. Morgan set a target of $300, noting favorable antitrust developments and AI investments as growth drivers. KeyBanc also targeted $300, highlighting faster product velocity across Search, Cloud, and Waymo.
Across the board, analysts are optimistic: of 54 analysts covering Google stock, the consensus is “Strong Buy”, with a mean price target of $323.35, implying a 2.5% upside from current prices. The combination of AI innovation, cloud expansion, and chip deals supports the stock’s continued growth narrative.
Is Google Stock Worth Buying Now?
For investors drawn to AI, cloud computing, and strong earnings growth, Google stock represents a unique opportunity. With Cathie Wood’s ARK Invest adding shares at record highs, Wall Street’s bullish stance, and Google’s Gemini 3 AI push and chip business with Meta, the stock continues to demonstrate both growth potential and market confidence.
In conclusion, while GOOGL is trading near all-time highs, its AI capabilities, cloud momentum, and enterprise chip business suggest that it remains a compelling choice for long-term investors seeking exposure to next-generation technology.
Additionally, Google’s ongoing investments in AI and cloud infrastructure position it well to capture future enterprise demand, particularly as companies increasingly rely on scalable AI solutions. With Gemini 3 adoption rising and potential partnerships expanding beyond Meta, Google stock could continue to deliver strong returns, balancing innovation with steady revenue streams.
Featured Image: Freepik
Author Stephanie Bédard-Châteauneuf 
