Why Google’s soaring stock is defying fears of an AI bubble

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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Google's parent company, Alphabet, has defied the broader tech market downturn, with its stock surging 16% since late October
• While major tech firms like Microsoft and Meta have faced declines, Alphabet’s market value now approaches $4 trillion, positioning it as the third-most valuable company globally
• This growth is fueled by its strong AI advancements, including the successful launch of its Gemini 3 model, alongside its strategic investments in AI hardware and cloud services

🔭 The context: Despite a challenging environment for tech stocks tied to the AI race, Alphabet has maintained strong performance, driven by both its AI innovation and dominant position in digital advertising
• The company’s integration of AI models with proprietary hardware, like its in-house TPU chips, gives it a competitive edge
• Its ability to tap into Google’s extensive search traffic and user base further strengthens its AI growth prospects

🌍 Why it matters for the planet: Alphabet’s ability to integrate AI and proprietary infrastructure at scale could reshape key sectors, from advertising to cloud services, with significant implications for digital sustainability
• Its AI model development—coupled with investments in hardware—signals a potential shift in how tech giants approach both AI and cloud computing, affecting innovation, energy consumption, and data management across industries

⏭️ What's next: Alphabet is expected to continue leveraging its AI capabilities to challenge competitors like Nvidia and Microsoft, particularly in the race to provide AI models and cloud infrastructure
• The company’s capital expenditures are projected to remain high, with a focus on expanding its AI and cloud services, although it remains to be seen when these investments will yield substantial returns

💬 One quote: "Google winning would actually hurt several stocks we cover—so prepare for volatility," – Ben Reitzes, Melius Research

📈 One stat: Alphabet's stock has jumped 16% since the Nasdaq peak on October 29, 2025

See on illuminem's Data Hub™ the sustainability performance of Alphabet and its peers Microsoft, Nvidia, and Meta

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