Alphabet Inc. (GOOGL, GOOG) is gaining traction as its stock nears record highs, driven by AI optimism, Wall Street upgrades, and budding competition against Nvidia. As of December 3, 2025, shares trade around $318, reflecting an 80% increase over the past year, and leaving the company with a valuation of nearly $3 trillion. Factors fueling this momentum include robust performance from Google Cloud, with Q3 2025 revenues hitting $15.1 billion (up 34% YoY) and a staggering $155 billion AI infrastructure backlog. Analysts see Alphabet as a competitive player in the AI chip market, particularly with its TPUs and Gemini 3 model outperforming rivals. Despite regulatory challenges, the overall sentiment remains bullish, especially following endorsements from high-profile investors like Elon Musk. However, consensus price targets suggest limited near-term upside, emphasizing the need for Alphabet to effectively monetize its AI advancements for sustained growth. Investors should weigh long-term potential against current valuations carefully.
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