Alphabet Stock Sets Record Close After Five-Month Winning Streak

Alphabet Inc. stock has set a record close after a 5-month winning streak, driven by strong enthusiasm for AI investments and robust Q2 earnings. The stock has seen a powerful rally, with five consecutive months of positive returns.

Alphabet Inc. (NASDAQ: GOOG) stock has set a record close on July 2, 2025, following a 5-month winning streak, driven by strong enthusiasm for AI investments and robust Q2 earnings. The stock has seen a powerful rally, with five consecutive months of positive returns.

On August 28, Alphabet reported earnings per share of $2.31, beating the $2.17 forecast. Revenue climbed 14% year-over-year to $96.4 billion, surpassing estimates of $93.9 billion. Operating income rose 14% to $31.27 billion, with a stable operating margin of 32.4%. Google Cloud continued its strong trajectory, recording $13.6 billion in revenue, up 32%, and doubling operating income to $2.83 billion [1].

A highlight of the quarter was Google securing a six-year, $10 billion cloud partnership with Meta Platforms. The deal allows Meta to leverage Google’s advanced cloud infrastructure, including AI accelerators like Tensor Processing Units and GPUs, to support large-scale AI projects [1]. This collaboration underscores AI’s growing infrastructure needs while highlighting how digital advertising competitors can collaborate in cloud services. Meta’s broader capital expenditure guidance of up to $118 billion in 2025 demonstrates the scale of demand.

Alphabet closed the quarter with approximately $95 billion in cash and marketable securities, maintaining flexibility for aggressive investment. Free cash flow totaled $5.3 billion despite a 70% year-over-year increase in capital expenditures, which reached $22.45 billion. The company raised its annual capital expenditure forecast to $85 billion, emphasizing AI and cloud buildout. CEO Sundar Pichai described these commitments as central to Alphabet’s long-term leadership strategy in artificial intelligence and enterprise services [1].

GOOGL shares have shown sustained momentum, gaining 6% in five days, 10% over one month, and 24% across six months. Shares touched a record intraday high of $212.27 this week before closing at $211.6. The stock’s Relative Strength Index (RSI) hit 73, signaling overbought conditions, yet the heavy trading volume suggests strong investor demand. Analysts maintain a consensus “Strong Buy” rating, with a mean price target of $220.43, reflecting 4.7% upside potential [1].

Google announced an additional $9 billion investment in Virginia through 2026 to expand AI and cloud infrastructure. The initiative includes a new data center in Chesterfield County and upgrades in Loudoun and Prince William counties. Virginia, dubbed “Data Center Alley,” has been a focal point for hyperscale investments. Google also committed $1 billion in AI training for Virginia college students, reinforcing local partnerships [1].

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Investors Should Keep on Their Radar. On August 26, Bernstein reiterated a “Market Perform” rating on the stock with a $210 price target. The firm discussed how Google reported strong results in Q2, with revenues growing 14% year-over-year and every business such as Search, YouTube, Cloud, and SP&D witnessing accelerating growth. Google’s AI features are gaining traction, with AI Overviews now being used by over 2 billion people [2].

Nvidia (NASDAQ: NVDA) has firmly established itself as the leading player in artificial intelligence (AI) infrastructure, as it accounts for nearly 92% of the data center GPU market. That dominance has been the foundation of its robust financial performances of recent years. In its fiscal 2026 second quarter (which ended July 27), Nvidia reported revenues of $46.7 billion, up 56% year over year and exceeding guidance, while its GAAP (generally accepted accounting principles) gross margin was 72.4%. Management now expects fiscal third-quarter revenue to reach $54 billion, plus or minus 2%, driven by increasing demand for its Blackwell-architecture GPUs [4].

References:
[1] https://parameter.io/alphabet-inc-goog-stock-new-record-high-on-10b-meta-cloud-deal-and-9b-virginia-data-center-push/
[2] https://finance.yahoo.com/news/alphabet-googl-q2-results-shine-045215853.html
[4] https://www.mitrade.com/insights/news/live-news/article-8-1083155-20250901