Alphabet’s GOOGL shares have surged 58% in the past year, outperforming the Computer and Technology sector by 30.7% and the Internet Services industry by 52.4%. The company’s AI push in search and cloud solutions, along with the launch of Gemini Enterprise, is driving growth amid competition and economic challenges.

Google’s dominance in Search, with a 90% market share, is supported by AI integration, leading to revenue growth. AI Overviews and AI Mode enhancements are driving user engagement and ad performance, with Search revenues increasing by 14.5% year-over-year to $56.57 billion in Q3 2025.

Alphabet’s Google Cloud is experiencing strong growth, with cloud backlog up 46% sequentially to $155 billion in Q3 2025. Revenues from Google Cloud Platform (GCP) surged 34% year-over-year, driven by core products and AI solutions, attracting new customers and expanding relationships.

Earnings estimates for Alphabet reflect positive growth, with a consensus estimate of $2.57 per share for Q4 2025, up 19.53% year-over-year. Revenue estimates for the same period are pegged at $94.09 billion, indicating a 15.28% increase. For 2025, earnings are estimated at $10.49 per share, up 30.47% from 2024.

Alphabet’s GOOGL stock is trading at a premium, with a Value Score of D, indicating overvaluation compared to industry peers. However, the company’s strong performance in AI-powered search and cloud computing justifies the premium valuation, making it a compelling investment opportunity for long-term investors.

Read more at Nasdaq: Alphabet Rises 58% in a Year: Should You Still Buy the GOOGL Stock?