This week, Alphabet (GOOGL) shares are trading higher thanks to a rebound in the tech stock market and the success of its Gemini 3 AI model. While the stock corrected just over 1% on Wednesday, it’s now up 9.2% in the last five days alone. Further, it breached a new ATH on Tuesday and continues to post solid numbers in Q4 2025.
Coming into Wednesday, GOOGL shares have surged more than 70% in 2025, on pace for their best year since 2009. As a result, Alphabet is also nearing a $4 trillion market cap, looking to join the ranks of Microsoft, Apple, and Nvidia. A big contributor to this has been AI. Indeed, artificial intelligence has had a positive effect on its business. “We are seeing AI now driving real business results across the company,” said Alphabet CEO Sundar Pichai in the company’s Q3 earnings release.
Furthermore, Alphabet’s cloud business, in particular, is benefiting from AI. “Cloud had another great quarter of accelerating growth with AI revenue as a key driver,” Pichai explained during the Q3 earnings call. “Cloud backlog grew 46% quarter over quarter to $155 billion.” The recent success of Gemini 3, following Berkshire Hathaway’s recent $4.3 billion investment in Alphabet, underscores growing institutional confidence in the company and its stock.
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Major firms and experts on Wall Street are now raising their price forecasts for Alphabet (GOOGL) stock. Last Friday, Justin Post from Bank of America Securities reiterated a Buy rating on the stock with a $335 price target. In addition, on November 19, Mark Mahaney from Evercore ISI also reiterated a Buy rating on the stock with a $325 price target. With stock now at $321, there’s a chance another wave of forecast hikes is coming, some perhaps as high as $350 in Q4 2025.