Alphabet Shares Surge on Record Performance and Strategic Moves

Alphabet Inc. has delivered a performance in 2025 that has outpaced even the most prominent tech giants, with its stock climbing 65% year-to-date. This remarkable ascent is fueled by the artificial intelligence boom, a landmark quarterly report, and significant strategic acquisitions. As regulatory pressures ease, institutional investors are making substantial commitments to the company.

The third quarter of 2025 marked a historic milestone for Alphabet as it surpassed $100 billion in revenue for the first time. Consolidated sales reached $102.35 billion, representing a 16% year-over-year increase. Key growth drivers included:
* Google Cloud: Revenue soared 34% to $15.2 billion, driven by demand for AI infrastructure and generative AI solutions.
* Google Search & other: Generated $56.57 billion, up from $49.39 billion in the prior-year period.
* YouTube Advertising: Brought in $10.26 billion, compared to $8.92 billion previously.
The company's operating profit rose 9% to $31.23 billion. Earnings per share of $2.87 significantly exceeded the analyst consensus estimate of $2.29.

Major Infrastructure Acquisition

In a strategic push to bolster its data center and energy capabilities, Alphabet announced an agreement to acquire Intersect, a developer of data center and energy infrastructure. The transaction is valued at $4.75 billion in cash plus the assumption of debt. Intersect contributes several gigawatts of power and data center projects currently in development or under construction. CEO Sundar Pichai stated the acquisition would enable more flexible capacity expansion and the co-development of power generation alongside data center infrastructure. The deal is anticipated to close in the first half of 2026.

Institutional Investment Floodgates Open

Major financial institutions have significantly increased their stakes. Farther Finance Advisors LLC boosted its position by 26.2% in Q3, holding 220,778 shares valued at $53.67 million. In a more notable move, Norway's sovereign wealth fund, Norges Bank, established a new position worth $21.94 billion. Warren Buffett's Berkshire Hathaway also entered the scene with an investment of approximately $4.3 billion. Collectively, hedge funds and institutional investors now hold about 40% of Alphabet's shares.

Should investors sell immediately? Or is it worth buying Alphabet?

Analyst Sentiment Reaches New Highs

Wall Street analysts maintain a strongly bullish outlook. Goldman Sachs raised its price target from $288 to $330 while reiterating a "Buy" rating. HSBC Global Research upgraded the stock to a "Strong Buy" recommendation. Consensus among covering analysts is overwhelmingly positive: 45 of 51 recommend buying the shares, with the remaining six holding neutral ratings. Not a single analyst currently advises selling. The average price target stands at $315.90.

Regulatory Relief and Segment Developments

On the regulatory front, a significant overhang was removed when a federal judge rejected a proposal that would have forced Alphabet to divest its Chrome browser or Android operating system. This dismissal of a worst-case antitrust scenario has been viewed positively by the market.

Within Alphabet's Other Bets segment, its autonomous vehicle unit Waymo experienced a setback when a power outage in San Francisco immobilized its robotaxi fleet. Despite this, reports indicate Waymo is negotiating a funding round that could value the business at over $100 billion. The service currently provides roughly 450,000 paid rides weekly.

Current Market Stance

Alphabet shares recently traded at $313.51. The stock reached an all-time high of $328.83 in late November and currently carries a price-to-earnings ratio of 30.92. With a market capitalization of $3.78 trillion, the company continues to offer a quarterly dividend of $0.21 per share.