Alphabet Stock Hits Record Highs on AI Gains

Alphabet Inc. (GOOG, GOOGL) stock surged to record highs on Nov. 24, 2025, as accelerating AI products and expanding Google Cloud revenue boosted the company’s valuation and reinforced its position among the S&P 500’s largest constituents.

Market Rally and Catalysts

Alphabet’s market capitalization approached $4.0 trillion, making it the third-largest company in the S&P 500 behind Nvidia and Apple. The late-November advance followed reports of a NATO deal and positive news on the company’s monopoly status, which renewed analyst confidence and eased regulatory concerns. These developments amplified investor enthusiasm alongside Alphabet’s operational momentum.

On a trailing 12-month basis, the company reported revenue of $385.5 billion with a net margin of 32.2%, reflecting substantial cash flow and capacity to fund further AI and cloud investments.

Google Cloud Growth and AI Momentum

Google Cloud revenue reached $15.2 billion in the third quarter of 2025, a 34.0% year-over-year increase that produced a $61.0 billion annual run rate and $3.6 billion in quarterly operating income, up 85.0% year over year. The unit showed both accelerating top-line growth and improving operating leverage, significantly contributing to overall profit gains.

Alphabet accelerated AI product launches with Gemini 3 Pro and Gemini Enterprise. The Gemini suite now serves more than 650 million monthly users and 70.0% of Google Cloud customers. Thomas Kurian, Google Cloud CEO, described Gemini Enterprise as “the new front door for AI in the workplace.” Management emphasized ongoing efforts to expand agent platforms and integrate Gemini across cloud services and security.

Executives and investors view this product adoption and Google Cloud’s rising profitability as central to Alphabet’s valuation rerating, positioning the cloud unit as the engine of the company’s next growth phase.

Capital Spending and Acquisition

Alphabet raised its 2025 capital-expenditure guidance to $91.0–93.0 billion, citing the need to double AI computing power every six months to meet demand. The increased spending will accelerate data-center buildouts and infrastructure to support large language models and enterprise cloud services.

The company has allocated about $40.0 billion for data centers in Texas and plans additional multi-billion-dollar projects worldwide to expand capacity and reduce latency for AI workloads. These investments underpin Alphabet’s strategy to scale AI computing and commercialize advanced models for customers and partners.

Alphabet also announced a $32.0 billion acquisition of cybersecurity firm Wiz to strengthen Google Cloud’s multi-cloud security offering. The deal, expected to close in the first half of 2026 pending regulatory approval, complements the cloud strategy by adding capabilities that could deepen enterprise adoption of AI and security services.

Together, accelerating product adoption, rising cloud revenue, and increased infrastructure and security spending reshaped Alphabet’s growth narrative this month and supported investor demand that pushed shares to record levels.