On 07 Nov 2025, I have posted on Bank of America (BAC) raising $Alphabet(GOOG)$ price target to $335 per share.
This was, at a time when actual price was still $279.70. Click here ! to read & Repost, so more will know ok - tks !
So much have happened in 30 days.
Topping it off, GOOG has surged to its all-time closing peak of $323.64 on 25 Nov 2025 (with an intraday high of $328.00).
The euphoria was driven by a series of high-impact events solidifying (a) investors’ confidence in the company's commanding lead in the AI race and (b) the accelerating profitability of Google Cloud.
GOOG’s Drivers.
The price jump, that propelled GOOG close to a $4 trillion market capitalization (up from $3.4 trillion in Q3 2025), was fueled by two primary factors:
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A major AI model breakthrough.
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The commercial success of its full-stack AI strategy.
1. Gemini 3 Launch & AI Dominance.
The single most significant catalyst was the unveiling and rapid deployment of the Gemini 3 AI model on 18 Nov 2025.
(a) State-of-the-Art Performance:
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Analysts immediately hailed Gemini 3 as the "current state-of-the-art" in frontier AI.
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Noting its superior performance over rivals like OpenAI's GPT-5 and Anthropic's latest models in reasoning, visual interpretation, and multi-modal capabilities.
(b) Immediate Deployment:
Google executed a strategic move by immediately deploying Gemini 3 into its core products that included:
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Google Search (enhancing AI Overviews and AI Mode).
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Gemini app.
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Integrating it into its Google Cloud enterprise stack.
This rapid commercialization addressed prior investor concerns about the pace of Google's AI rollout.
(c) Accelerated User Adoption:
The consumer success of Gemini, that had already reached 650 million monthly active users (AMUs) by Q3 2025, has just been further accelerated.
The underlying infrastructure is now processing over 7 billion tokens per minute via direct API use, and the new model is processing over 1.3 quadrillion tokens per month, a 20x increase from the previous year.
(d) Monetization Synergy:
Integration of AI into Google’s prime product ‘Search’ proved to be an expansionary moment, not a cannibalizing force.
Efficiency gains from AI enhancements were visible in the advertising business, where both paid clicks and cost-per-click rose +7% YoY (an acceleration from the +7% paid clicks reported in Q3).
2. Google Cloud's Full-Stack AI Strategy.
Google Cloud's role transitioned from merely a competitor to a clear AI infrastructure leader, driven by its vertical integration of hardware & software.
(a) TPU Momentum and Enterprise Deals:
On 24 Nov 2025, The Information first reported of a potential, massive deal with $Meta Platforms, Inc.(META)$ purchasing GOOG's TPU AI chips for its data centre, currently under construction.
This validated GOOG's full-stack approach, where its proprietary hardware (TPUs/Trillium chips) is a critical differentiator.
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GOOG’s latest Ironwood TPUv7 chips were reported to deliver 10x the performance of TPUv5 and 3x the performance per watt, compared to previous generations. It positions them as the most power-efficient AI compute solution in the industry, an attractive feature amid rising energy constraints.
More importantly, investors are seeing META’s purchase if materializes mounts serious doubts over $NVIDIA(NVDA)$ dominance in the AI-chips race.
NVDA’s marcom politically incorrect ‘backhanded’ compliments has resulted in an unexpected backlash from the market.
The need to publicly address a competitor's deal with a major customer was interpreted by many analysts and commentators as a sign of fear or insecurity, regarding their market dominance.
(b) Accelerating Growth and Margin:
Strong momentum from Q3 2025 earnings (Cloud Revenue up +34% YoY and with a 23.7% margin) led analysts to significantly increase their 2026 growth forecasts.
Some analysts are even projecting Cloud revenue growth to hit 50% or more, up from previous consensus of 31%.
(c) Capital Investment and Backlog:
GOOG has raised its capital expenditure (CapEx) guidance for FY2025 to $91–93 billion (up from $85 billion), with 60% dedicated to servers.
This massive investment has been interpreted by market as a confident commitment to maintaining its AI lead, as the Cloud backlog already stood at a record $155 billion in Q3 2025, reflecting strong enterprise adoption of its AI workloads.
Investor & Analyst Endorsements
1. The "Buffett Effect"
One of the largest non AI-related factors was the disclosure of a new, substantial $4 billion stake in Alphabet by Warren Buffett's $Berkshire Hathaway(BRK.B)$, revealed via the company’s 13F filing in mid-November.
This significant institutional endorsement was seen as validation of Google's (i) long-term financial stability, (ii) cash flow, and (iii) fundamental value, reinforcing the bullish case on Wall Street.
2. Raised Price Targets
In response to Gemini 3 launch and Cloud's accelerated growth, analysts issued multiple price target increases in the days leading up to the all-time high:
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Evercore lifted its price target to $325.
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BNP Paribas reinstated coverage with a target of $355.
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Guggenheim reiterated a “Buy” rating and raised its own forecast to $375 from previous $330.
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HSBC doubled down on the “Buy” rating and adjusted price to $370, from $335.
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Arete Research maintained a “Buy” recommendation and raised the target price to $380 from $300.
The combination of a definitive AI product win with Gemini 3, the validated commercial strength of its proprietary hardware (TPUs) via major enterprise demand, and the renewed confidence from top-tier institutional investors converged to drive GOOG to its peak valuation in November 2025.
3. Apple Intelligence.
On 06 Nov 2025, it was reported that GOOG's Gemini model will be deployed to power the next-generation Siri within AAPL’s broader Apple Intelligence platform on the iPhone.. (see below)
This is slated to take place in the Spring of 2026.
The tie up immediately benefits GOOG by securing a massive, recurring revenue stream, reportedly earning over $1 billion annually from one of the world's largest companies for its Google Cloud and AI services.
Additionally, AAPL's choice of Gemini over rival models like ChatGPT validates GOOG's technology as a leading, enterprise-grade AI foundation model, in the highly competitive frontier AI space.
This partnership effectively puts GOOG's AI on potentially billions of Apple devices worldwide, dramatically expanding Gemini's global deployment and making it a ubiquitous, behind-the-scenes engine for a major portion of the mobile ecosystem.
4. Cathie Wood’s Purchase.
On 25 Nov 2025, it was reported that $ARK Innovation ETF(ARKK)$ funds’ Cathie Wood has doubled down on GOOG shares, further exciting US market. (see below)
Ark Invest scooped up 174,293 shares of GOOG (valued at $56 million), boosting its stake as the search giant's market value continues to creep higher.
While the purchase is a nod to GOOG, investors need to keep in mind & perspective that Ark is doubling down on AI infrastructure winners. It's a bet on chip and cloud dynamics, not a guaranteed win, so expect the trade to stay watchlist-worthy.
Another point to note is, Cathie Wood is not a long term investors. At the first sight of profit, she will not hesitate to sell and bank in the profits, regardless of company’s fundamentals, valuation or future prospect.
5. Chip As a Revenue Source ?
Alphabet investors are growing increasingly confident that GOOG’s semiconductors could represent a significant driver of future revenue.
According to DA Davidson, Head of Technology research, Gil Luria:
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If companies want to diversify away from $NVIDIA(NVDA)$, GOOG’s TPUs are a good way to do it.
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GOOG chip business could ultimately be worth more than Google Cloud.
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Estimates GOOG could capture 20% of the AI market over a few years, making roughly US$900 billion in revenue, if GOOG is serious about retailing TPUs.
Homestead Advisers, Equity Portfolio manager, Mark Long summed up:
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Alphabet is the only company with leadership in every layer of AI.
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He was referring to GOOG’s suite of products - (a) Gemini, (b) Google Cloud, (c) the TPUs and (d) several other areas.
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This gives GOOG, an incredible holistic advantage.
My Viewpoints: (mine only)
GOOG’s uptick happened all in the space of November 2025 onwards. (see below)
As of 05 Dec 2025
It has been non-stop good news after good news that helped to seal investors’ confidence in the stock.
With GOOG’s stock price of $322.09 trending above its moving averages (ma) of 20-day ($301.67), 50-day ($275.27) and 200-day ($206.15), it is a strong technical signal that GOOG is in a robust & sustained uptrend across multiple timeframes.
GOOG’s RSI of 70.53 has just crossed over to “overbought” territory.
A short-term pause, consolidation, or slight pullback may be necessary to relieve the buying pressure and cool off the momentum before GOOG attempts another major move higher.
Gains increased to 181% from 169%
Will there be more “good” news on the horizon as we inched towards 2026 ? The possibilities seem endless now.
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