Alphabet (NASDAQ: GOOGL) has surpassed its Magnificent Seven peers and AI competitors in 2025. Despite initial concerns, the tech giant’s recent performance and AI advancements have garnered investor confidence. Google’s release of Gemini 3, its latest AI model, has received positive feedback, showcasing its lead in the AI race.

Gemini 3, trained on Google’s TPUs, outperformed industry benchmarks and drew praise from industry leaders. Google’s vertical integration provides a pricing and scalability edge, sparking market reactions and analyst upgrades. Even NVIDIA acknowledged the achievement, highlighting Google’s competitive advantage in AI technology.

Google’s TPUs may soon expand beyond its cloud infrastructure, with discussions underway for on-premise use in customer data centers. Meta Platforms is reportedly exploring a deal to integrate TPUs into its data centers. Alphabet’s momentum was strong even before Gemini 3, with Berkshire Hathaway’s endorsement signaling confidence in its growth.

Alphabet’s recent earnings report marked its first $100B quarter, showcasing growth across its divisions. The company’s fundamentals are accelerating, with Google Cloud profitability expanding and ad revenue growing. With positive momentum and improving execution, Alphabet is positioned as a leader in the AI race, setting the pace for future growth.

Read more at NASDAQ: Alphabet: The AI Leader Best Positioned to Dominate 2026