Alphabet shares rose by around 65% in 2025, becoming the top performer among the “Magnificent Seven.” This result surprised the market, which had previously doubted the company’s ability to maintain its position amid rising competition in artificial intelligence.

The rally was supported by stable performance across key business segments. Search retained its leadership, while the cloud division continued to expand, increasing its order backlog and strengthening its position in the enterprise market.

Additional momentum came from progress in AI development, proprietary chips, and favorable legal decisions. Interest from large investors also boosted confidence in the company’s long-term strategy and supported positive sentiment.

However, Alphabet enters 2026 with higher valuations and elevated expectations. Analysts foresee more moderate growth, as rising AI-related investments may temporarily weigh on earnings and free cash flow.