Out of all of the magnificent 7 US stocks on the current market, Alphabet (GOOGL) may be one of the cheapest and most promising options to invest in. If you are looking to engage with a tech powerhouse in the trillion-dollar market cap market, GOOGL is a great choice for big players. Each of these stocks, except Microsoft, has climbed in the double digits over the past year. This is as investors piled into companies developing or using AI products and services.
Alphabet is one of these companies that is putting forth an AI-driven investor mindset. Year-to-date, Alphabet stock is down 2% in 2025. However, investors cite investments like the latest $75B one as indicators that GOOGL stock is currently underrated. Over the next few years, Google expects continued developments and advancements, especially in AI.
For just $180 a share roughly at press time, a stock that sits in the 2 trillion market cap club seems like a solid choice. In the last six months, Alphabet is picking up steam, with GOOGL shares up 11%. Despite the growth, some analysts still call the stock undervalued and have buy ratings. Guggenheim Partners expects investors to eventually favor companies that demonstrate clear returns on their AI investments. The firm does see Alphabet as one of these companies, which could result in GOOGL stock climbing in the next few years.
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Furthermore, Alphabet Inc. is expanding its reach in AI in 2025 with new partnerships. Specifically, Semiconductor design company Synaptics recently unveiled a partnership with Google to advance artificial intelligence capabilities. Synaptics announced the companies would collaborate on enhancing edge AI for the Internet of Things, or IoT, by combining Google’s machine learning core with Synaptics’ Astra hardware and open-source software. The effort is intended to foster the development of AI devices that can process vision, voice, and other sensory modalities.
For the near future, Wall Street investors are bullish on Alphabet stock. On February 10, analyst Justin Post from Bank of America maintained a “Buy” rating on GOOGL and a $225.00 target. According to the firm, the AI search landscape has had several new entrants in the market, particularly ChatGPT. Additionally, Google’s numbers remain strong, especially in terms of searches and ad revenue.