Why Alphabet and Intuit Are the Must-Have Tech Plays in 2025

In 2025, the technology sector continues to pivot toward AI-driven innovation and sustainable monetization models. Two companies stand out as archetypes of this evolution: Alphabet (GOOGL) and Intuit (INTU). While Alphabet dominates the AI infrastructure and cloud computing space, Intuit is redefining financial technology through recurring revenue strategies. Together, they represent a compelling case for investors seeking exposure to the next phase of tech-driven growth.

Alphabet: AI Infrastructure and Cloud Momentum

Alphabet's Q2 2025 earnings report underscored its dominance in AI and cloud computing. The company reported $96.43 billion in revenue, surpassing Wall Street's $94 billion forecast, with Google Cloud revenue surging 32% year-over-year to $13.62 billion. This growth is fueled by insatiable demand for AI-related services, including model training and application processing.

Alphabet's strategic investments are accelerating its infrastructure buildout. The company raised its 2025 capital expenditures to $85 billion from $75 billion, with further increases expected in 2026. This reflects a race to meet a $106 billion cloud customer backlog, as data centers expand to support AI workloads. CEO Sundar Pichai highlighted partnerships like OpenAI's use of Google Cloud for ChatGPT, signaling Alphabet's role as a critical enabler of the global AI ecosystem.

The financial metrics are equally compelling. Google Cloud's operating margin expanded significantly, outpacing rivals like AWS and Azure. Analysts project this momentum will persist through 2026, given the tight supply environment for cloud services. Alphabet's stock surged 3% in after-hours trading post-earnings, reflecting confidence in its AI-driven strategy.

Intuit: Subscription Monetization and AI-Driven Efficiency

Intuit's Q2 2025 results revealed a fintech leader leveraging AI and recurring revenue to drive profitability. The company reported $4.0 billion in revenue, a 17% year-over-year increase, with its Global Business Solutions Group (GBSG) growing 19% to $2.7 billion. QuickBooks Online Accounting revenue rose 22%, driven by higher pricing and customer adoption.

Intuit's shift to recurring revenue models is a cornerstone of its strategy. By automating billing through fixed and variable recurring payments, the company reduces administrative burdens for small businesses while ensuring predictable cash flow. For instance, 46% of consumers manually pay bills late, but recurring payments eliminate this risk. Intuit's AI-powered platform, Intuit Assist, further enhances value by automating workflows and connecting users to human experts.

The financials back this approach. Intuit's GAAP operating income grew 61% year-over-year to $593 million, with non-GAAP operating income up 26% to $1.3 billion. Earnings per share (EPS) rose 34% on a GAAP basis and 26% non-GAAP, reflecting efficient cost management. The company also increased its dividend by 16% and repurchased $721 million in stock, signaling strong capital allocation.

Strategic Synergies and Long-Term Potential

Alphabet and Intuit represent two sides of the same coin: infrastructure and application. Alphabet's AI cloud infrastructure enables companies like Intuit to scale AI-driven services, creating a symbiotic relationship. Intuit, in turn, exemplifies how recurring revenue models can stabilize growth in volatile markets.

From a technical perspective, both stocks exhibit bullish indicators. Alphabet's P/E ratio of 28.5x and forward PEG of 1.2x suggest undervaluation relative to its growth. Intuit's P/E of 34x and recurring revenue margins above 80% highlight its premium valuation but justify it with high-margin, sticky subscriptions.

Investment Thesis

For investors, the case is clear:
1. Alphabet offers exposure to the AI infrastructure boom, with cloud revenue growing at a 30%+ CAGR and a $106 billion backlog. Its capital expenditures signal long-term commitment to AI dominance.
2. Intuit combines fintech innovation with recurring revenue resilience, backed by AI-driven efficiency and a 16% dividend increase. Its GBSG and Credit Karma segments are high-growth engines.

Conclusion

In a market where AI and subscription models are reshaping industries, Alphabet and Intuit are not just participants—they are architects. Alphabet's infrastructure and cloud momentum position it as the backbone of AI innovation, while Intuit's monetization strategies redefine financial services. For investors seeking long-term growth, these two stocks offer a balanced portfolio of high-impact tech plays.

Final Recommendation: Add Alphabet and Intuit to your 2025 portfolio. Alphabet for its AI-led infrastructure bets and Intuit for its recurring revenue model and fintech dominance. Both are well-positioned to deliver compounding returns as the AI and subscription economies mature.