Alphabet’s shares have seen a 40% increase in the past year, reaching near all-time highs. The company has shown strong growth in its advertising and cloud businesses, announced a new $70 billion share buyback plan, and approved its first dividend. Despite lagging behind Nvidia in the AI market, Alphabet’s recent developments have alleviated investor concerns.
Nvidia, on the other hand, has soared over 210% in the past year, outperforming Alphabet and surpassing its market capitalization. Could Alphabet reclaim its position and surpass Nvidia by the end of 2025?
Alphabet’s revenue rebounded over the past year, with significant growth in its advertising, cloud, and subscriptions, platforms, and devices segments. The company’s strategic expansions and product launches have contributed to its overall growth.
Looking ahead, Alphabet faces challenges in the AI space, competitive landscapes in advertising and cloud markets, and ongoing regulatory investigations. However, analysts expect the company’s revenue to grow at a CAGR of 11% and its EPS at a CAGR of 20% from 2023 to 2026.
If Alphabet continues to meet these expectations and maintains its forward earnings multiple by the end of 2025, its share price could rise by 30%, reaching $228 and boosting its market capitalization to $2.9 trillion. However, Nvidia is also anticipated to see continued growth in the AI chip market.
Alphabet and Nvidia operate in different industries with distinct business models, making direct comparisons challenging. Investors should focus on Alphabet’s macroeconomic, competitive, and regulatory challenges to assess its long-term investment potential.
Before investing in Alphabet stock, investors should consider the recommendations from Stock Advisor, which has a track record of identifying high-potential stocks. The service has outperformed the S&P 500 since 2002 and offers guidance on building a successful portfolio.
In conclusion, while Alphabet has shown positive growth and potential for the future, investors should carefully evaluate the company’s competitive landscape and challenges to make informed investment decisions.
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https://finance.yahoo.com/news/alphabet-worth-more-nvidia-2025-224500478.html