Alphabet's AI Partnership with Apple Boosts Stock 3.49%

Alphabet's (GOOG) shares rose 3.49% on Federal Reserve Chairman Powell's interest rate cut signal and potential AI partnership with Apple's Siri. The collaboration could propel Alphabet's technology further and reinforce its position in the tech industry. Alphabet's stock valuation is 'odestly overvalued' with a GF Value of $185.34 and a P/E ratio of 22.11. The company has demonstrated consistent growth with a 19.3% revenue growth and 21.3% EBITDA growth over the past 10 years.

Alphabet Inc. (GOOG) shares surged 3.49% on August 22, 2025, following reports of potential AI partnership discussions with Apple Inc. and a signal from Federal Reserve Chairman Powell regarding interest rate cuts. The stock closed at $207.57, driven by speculation about the AI collaboration and expectations of a rate cut that could boost economic activity.

The potential partnership involves Alphabet training a custom Gemini model for Apple’s servers to enhance Siri's multimodal capabilities by 2026. This move aligns with Apple's broader effort to accelerate its AI capabilities after delays in internal projects. Google’s Gemini, which has led AI performance benchmarks, could offer Apple a competitive edge in features like multimodal processing (text, voice, video), areas where Siri has lagged [1]. However, the partnership remains exploratory, with no formal agreements or financial terms outlined.

Regulatory scrutiny of Alphabet's $10B annual search deal with Apple persists, while Apple faces internal AI team instability, prompting external collaboration prioritization. The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a moderate return. The total profit from this strategy, considering the given time frame from 2022 to the present, is $2,340. The cumulative return reaches 23.4% [3].

Alphabet’s stock valuation is 'oddly overvalued' with a GF Value of $185.34 and a P/E ratio of 22.11. The company has demonstrated consistent growth with a 19.3% revenue growth and 21.3% EBITDA growth over the past 10 years [2].

References:
[1] https://www.ainvest.com/news/alphabet-stock-surges-3-17-apple-backed-ai-pact-spikes-sixth-trading-volume-2508/
[2] https://www.ainvest.com/news/apple-considers-google-gemini-ai-siri-upgrade-bloomberg-reports-2508/
[3] https://coincentral.com/alphabet-inc-goog-stock-surge-3-on-10b-meta-cloud-deal-and-global-ai-expansion/