TLDR
- Alphabet stock has gained 16% in September and 60% over the past six months following positive regulatory news and strong Q2 earnings
- Top investor Dair Sansyzbayev maintains Strong Buy rating, citing effective management execution in AI expansion
- Google’s Gemini AI model recently surpassed ChatGPT as the most downloaded free app
- Citizens JMP reiterates Market Outperform rating with $290 price target as Google AI Mode expands globally in Spanish
- Wall Street consensus shows 30 Buy ratings and 8 Hold ratings for GOOGL stock
Alphabet’s stock has been on fire this September. The tech giant’s shares have climbed 16% over the past few weeks.
The rally comes after a positive regulatory ruling that won’t hurt GOOGL’s operations. But that’s not the only thing pushing the stock higher.
The company’s Q2 2025 earnings showed strong performance across the board. Alphabet beat expectations on both revenue and earnings.
Revenue hit $96.4 billion, marking a 14% jump from the same period last year. The numbers show a company firing on all cylinders.
Over the past six months, GOOGL has surged almost 60%. That’s the kind of run that makes investors wonder if it’s time to take profits.
But top investor Dair Sansyzbayev isn’t backing down. He’s among the top 3% of stock professionals tracked by TipRanks.
“I’m still very optimistic about Google,” Sansyzbayev says. He points to management’s strong execution in AI expansion.
AI Competition Heats Up
The investor likes what he sees in Alphabet’s AI progress. Google’s Gemini AI model just passed ChatGPT as the most downloaded free app.
That’s a big win for Google in the AI race. Many worried that new language models would hurt Google’s search business.
Instead, the company is finding ways to stay competitive. Usage is growing across multiple Alphabet products.
A recent survey shows 44% of companies adding a second cloud provider pick Google. That’s up from 37% last year.
Google is also expanding into new areas with AI. The personalized Google TV experience uses AI to recommend content based on user preferences.
“I view this as a smart move,” Sansyzbayev notes. It should boost user engagement while collecting more data for advertising.
Citizens JMP also sees promise in Alphabet’s AI expansion. The firm kept its Market Outperform rating with a $290 price target.
Global Reach Expands
Google AI Mode is now rolling out in Spanish worldwide. This marks a major expansion into non-English speaking markets.
Citizens JMP thinks this multilingual expansion could drive more search queries. More users means more engagement and revenue potential.
The move fits Alphabet’s strategy to integrate AI across all its products. The company wants to reach diverse linguistic markets globally.
Waymo’s autonomous driving business also excites Sansyzbayev. He sees it as another potential multibillion-dollar revenue source.
The self-driving car unit represents business beyond cloud and advertising operations. It shows Alphabet’s ability to diversify revenue streams.
Wall Street seems to agree with the bullish outlook. The stock has 30 Buy ratings and 8 Hold ratings from analysts.
The Strong Buy consensus rating reflects confidence in Alphabet’s direction. However, the recent rally has pushed prices above many targets.
The 12-month average price target sits at $244.14. That suggests limited upside from current levels around $256.
Sansyzbayev isn’t worried about valuation concerns. He points to Alphabet’s solid balance sheet and cash reserves.
The company also shows rising margins across its business segments. This combination puts Alphabet in a strong position to capitalize on market opportunities.
Google AI Mode’s Spanish rollout represents the latest step in Alphabet’s global AI expansion strategy.
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