Analysts believe Alphabet is well on its way to catching up with the big players in the tech industry. The strong position in the area of AI is particularly seen as the key to challenging even NVIDIA.
• MoffettNathanson raises price target for Alphabet and sees around 20 percent potential
• Strong AI position with clear leadership in multimodal search and accelerated product cycles
• With a market value of almost 3 trillion US dollars, Alphabet is still behind NVIDIA, Microsoft and Apple
AI as a growth driver for Alphabet
Artificial intelligence plays a crucial role in the race for dominance in the tech industry. As Bloomberg reports, analyst Michael Nathanson of MoffettNathanson sees Alphabet as a unique combination of market leadership, diversification and scale. These factors make Google’s parent company a candidate for the title of most valuable company in the world.
An important driver is the clear leadership role in multimodal search, which sets the company apart from classic search engines. Above all, Alphabet’s course has changed. “We see this as a tipping point: from reactive to proactive, and now Google is setting the pace of innovation,” Nathanson wrote, according to a report by Bloomberg. This gives Alphabet the role of a company that is no longer playing catch-up in AI development, but is instead setting the direction itself.
Rising confidence on Wall Street
The stock receives an additional boost from Nathanson’s new price target. The analyst raised his forecast from $230 to $295 and reiterated his “Buy” rating. This would correspond to an upside potential of around 17 percent compared to the most recent closing price on the NASDAQ of $251.51 (as of October 6, 2025).
Other experts also see further potential. According to TipRanks, 13 out of 14 analysts rate the stock as a “Buy,” with only one voting for a “Hold.” The average price target is $242.09, with the highest being $300. This broad approval gives the stock additional tailwind. According to data from MarketWatch, Alphabet has also gained around 32 percent in value since the beginning of the year, significantly outperforming the NASDAQ tech stocks index, which rose 18.8 percent in the same period.
Still behind NVIDIA, Microsoft and Apple – but with tailwind
With a market capitalization of approximately $2.97 trillion, Alphabet is currently the fourth most valuable company in the world. NVIDIA currently leads the rankings with $4.56 trillion, followed by Microsoft with $3.85 trillion and Apple with $3.83 trillion. The gap is still large, but recent price gains show that Alphabet can definitely catch up.
There is also a legal aspect that gives the company some breathing room. As Bloomberg reports, Alphabet was able to achieve success in a lengthy US antitrust case. A court rejected tough measures demanded by regulators, including the possible sale of the Chrome browser. Together with increasing demand for AI products, which became visible in the latest quarterly figures, this strengthens the group’s position in competition with the other megacaps.
Editorial team finanzen.net