Alphabet’s GOOGL shares have surged 64.7% in the past year, outperforming the Magnificent 7 stocks and the Roundhill Magnificent Seven ETF (MAGS). The company’s AI push in search, YouTube, and cloud computing platforms has contributed to its success, despite competition in the cloud computing domain. Alphabet’s stock valuation is currently overpriced, with a forward price/sales ratio higher than the sector average.

Google continues to dominate the search business with AI integration, enhancing user experience and ad performance. The addition of shopping capabilities in AI Mode is driving monetization opportunities. Alphabet’s AI features like AI Max and Gemini 3 are expected to boost prospects in 2026. Google Cloud’s Gen AI adoption and strong demand for enterprise AI infrastructure are driving growth.

Analysts have positive earnings estimates for Alphabet, with projected growth in both earnings and revenues for 2025 and 2026. Despite positive prospects, Alphabet’s premium valuation and challenges like capacity constraints and higher expenses may impact profitability. Investors are advised to hold Alphabet stock at the moment.

Quantum Computing is the next technological revolution, with companies like Microsoft, Google, Amazon, Oracle, Meta, and Tesla investing in this field. Senior Stock Strategist Kevin Cook recommends 7 stocks poised to dominate the quantum computing landscape in his report. Investors can position their portfolios at the forefront of this opportunity.

Read more at Nasdaq: GOOGL Best Performing Magnificent 7 Stock in a Year: Buy or Hold Now?