Alphabet's stunning stock surge this year could fuel this never-before-seen feat

By Christine Ji

Wall Street once thought ChatGPT would kill Google. Now Alphabet's stock is on track to become the best-performing 'Magnificent Seven' stock on an annual basis for the first time in its history.

Shares of Alphabet have rallied 50% so far in 2025.

For the first time in history, Alphabet Inc.'s stock could be the best annual performer within the "Magnificent Seven."

Since Nov. 5, Alphabet's (GOOGL) (GOOG) stock has been the best-performing Magnificent Seven name on a year-to-date basis, beating out the previous winner, Nvidia Corp. (NVDA), according to Dow Jones Market Data. The stock also enjoyed a brief stint as the biggest 2025 gainer of the bunch back in September.

As of Tuesday's close, shares of Alphabet had gained 50% in 2025. In second place was Nvidia, whose stock was up 35%.

Alphabet has never been the top performer among its Magnificent Seven peers over any given calendar year. The closest it got was in 2021 - about two years before the moniker was created - when its 65% annual gain placed it a distant second to Nvidia's 125% surge.

There are a few quick caveats. Alphabet, then known as Google, went public in 2004. At the time, Meta Platforms Inc. (META) and Tesla Inc. (TSLA) weren't public. But the data is tracking Alphabet's performance since the time of its initial public offering against whichever of its current Magnificent Seven peers existed in each year since.

This year hasn't been a regular one for Google's parent company. Alphabet started 2025 on shaky ground as investors worried that ChatGPT and an antitrust ruling concerning Google Chrome could upend the search business. The stock had registered a 23% year-to-date decline at its lowest point in April.

But in a surprising turnaround, Google's Gemini offering steadily gained traction, in part due to the launch of image editor Nano Banana. Investors were also encouraged by the better-than-feared outcome of the antitrust ruling, which did not require Google to divest Chrome.

Read: Google's Gemini 3 is finally here. Can it power Alphabet's stock even higher?

Alphabet's success comes as shares of Nvidia have experienced a 10% pullback since the beginning of November. The chip maker, which is set to report earnings Wednesday after the bell, has been pressured alongside other tech stocks due to fears about the circular financing of the artificial-intelligence trade. Shares of Alphabet have risen 1% over the same period.

Alphabet "was clearly the most out of favor earlier in the year as ChatGPT was gaining traction and everyone thought search was dead," Aaron Clark, portfolio manager at GW&K Investment Management, told MarketWatch. "Alphabet didn't have a solid offering, but now Gemini clearly has taken on some added relevancy."

On Tuesday, Google announced its latest Gemini 3 model, which it said outperformed Anthrpic and OpenAI's models on a variety of tasks. But Gemini isn't the only thing fueling the stock higher. Google has also made significant progress this year on its custom AI chips, called tensor-processing units. Google's recent deal to supply Anthropic with TPUs shows that it's expanding its chips from in-house use to external customers. Additionally, Google Cloud has been growing revenues rapidly as it captures incremental AI workloads.

To analysts, Google's biggest advantage comes from its ability to integrate and monetize AI across its entire ecosystem of products. In a Tuesday note, Needham analyst Laura Martin pointed out that Alphabet has a "full end-to-end tech stack" and a cloud business to distribute its AI technology.

Clark also pointed to the company's integrated ecosystem across search, the cloud, YouTube and Android, which gives it access to first-party data and provides a distribution channel for its AI products.

During a time when investors are increasingly concerned about massive amounts of AI spending, Martin said Google is best positioned to deliver a return on its invested capital.

Also read: Why it's not too late to buy Alphabet's stock, according to the newest Google bull

-Christine Ji

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-19-25 1011ET