Alphabet Inc. (GOOGL) shares have surged over 70% year-to-date, nearing Nvidia's market capitalization with a current valuation of $4.6 trillion. This growth follows a new agreement with Microsoft and xAI to share early AI program versions with the Trump administration for evaluation by the U.S. Department of Commerce's Center for AI Standards and Innovation. Alphabet's strong first-quarter performance, with $109.9 billion in revenue and $5.11 earnings per share, has exceeded market expectations, driving optimism among analysts.
Google Cloud's revenue soared 63% to $20 billion, supported by a $460 billion backlog and increased Gemini API usage. This growth offsets concerns over doubled capital expenditures, as investments focus on AI and cloud infrastructure. Analysts, including J.P. Morgan and Pivotal Research, have raised their price targets for Alphabet, citing its successful AI investments and robust revenue growth. All 72 analysts covering Alphabet maintain a "Strong Buy" rating, with expectations of continued stock appreciation.
Alphabet Nears Nvidia's Market Cap as Shares Hit Record Highs
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