Alphabet stock rallied sharply on Monday, buoyed by renewed confidence in the company’s artificial intelligence roadmap, accelerating cloud momentum, and fresh analyst support.
The stock’s surge extends a strong run that has made Alphabet the best-performing BATMMAAN name of 2025.
Alphabet’s stock — trading at $317.25, up 5.9% — has led the BATMMAAN group this year, fueled by AI-driven enthusiasm and confidence in its ability to deepen its competitive moat across advertising, cloud computing, and consumer software.
The BATMMAAN group is a newly coined market acronym referring to eight of the largest and most influential US technology companies — an evolution of earlier labels such as FAANG and the Magnificent Seven.
The momentum is anchored in the market’s enthusiastic reception to Gemini 3, Alphabet’s newest generative AI model, which has reaffirmed the company’s competitiveness in what has become the defining battleground of the technology sector.
Alphabet’s recent earnings, which exceeded expectations, have helped underscore that its AI investments are translating into meaningful business gains.
Steady growth in Google Cloud has further strengthened investor sentiment, offering evidence of broadening revenue streams beyond Google Search and YouTube.
Analysts describe the current rally as a reflection of Alphabet’s reinforced strategic position, despite its valuation climbing to elevated levels.
Confidence remains centred on the company’s long-term AI potential and the durability of its cloud and advertising operations.
Analysts highlight Alphabet’s AI advantage
BNP Paribas Exane initiated coverage of Alphabet with an Outperform rating and a $355 price target, calling the company an “AI/Cloud winner” positioned advantageously across multiple core businesses.
The firm cited Alphabet’s dominance in Search, leadership in video through YouTube, and the continuing expansion of Google Cloud as key components of its long-term growth trajectory.
The research note acknowledged that Alphabet’s shares had faced pressure in recent periods, stemming from regulatory scrutiny, competitive threats in search and advertising, and questions about its AI roadmap.
However, BNP Paribas Exane said those concerns have eased as Alphabet has demonstrated clearer progress in artificial intelligence, particularly through Gemini 3, and rebuilt market confidence in its ability to lead the sector.
The firm added that there is “more room for multiple expansion” as the company continues to prove its AI execution capability and integrates new models into its suite of software products.
A turnaround for the Alphabet stock
Alphabet’s resurgence marks a sharp contrast to the scepticism it faced just half a year ago.
At the time, investors questioned whether Google’s Search business was at risk of disruption from ChatGPT, and many of the company’s early-stage ventures were not delivering meaningful contributions to profitability.
Meanwhile, the US government had been exploring a potential antitrust remedy that could have broken up parts of Google’s ecosystem.
Over the past six months, multiple factors have shifted decisively in Alphabet’s favour.
The launch of Gemini 3, welcomed by users and influential industry figures, helped reestablish Alphabet as a formidable competitor in the AI race.
The model’s capabilities even triggered unease among rivals, including OpenAI’s Sam Altman, reinforcing perceptions that Alphabet had regained technological momentum.
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