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Google-parent Alphabet (GOOGL) seems to be in the artificial intelligence winners circle. But it may have to share it with well funded startup OpenAI. Google stock has gained 48% in 2025. Meanwhile, Google stock hit an all-time high after reporting third quarter earnings. Shares are well over the $3 trillion valuation milestone. Investor angst over potential disruption of the core internet search business amid the emergence of generative artificial intelligence remains, though anti-trust worries have abated somewhat. In search, new competition from OpenAI's ChatGPT, Perplexity and others has forced Google to overhaul its search results. ChatGPT delivers answers to search queries, while Google's business model has been based on providing weblinks. Google, OpenAI Rivalry OpenAI has been leveraging its newest AI model, GPT-5, and recently introduced a web browser. Meanwhile, Google's Gemini app has more than 650 million monthly average users. But ChatGPT has more than 800 million weekly active users, including many consumers with subscriptions. Going forward, Google will push users of its Chrome browser toward Gemini. Further, Wall Street analysts are eyeing possible catalysts for Google stock. That's where an upcoming AI model called Gemini 3 comes in. Google plans to release its newest model, Gemini 3, later this year. Google is leveraging artificial intelligence prowess in models, chips, agents and data security to grow its cloud computing business, said CEO Thomas Kurian, said at an industry technology conference in September. New customers include OpenAI, Meta Platforms (META), and Anthropic. One view is that Google's home-grown AI accelerator chips, called TPUs, are becoming a stronger rival to Nvidia (NVDA). In March, Alphabet agreed to buy fast growing cybersecurity firm Wiz in an all-cash $32 billion deal. One view is that the Wiz purchase could boost Google's cloud computing market share versus Amazon and Microsoft (MSFT) Google Stock: Antitrust Worries In early September, Google stock rallied when a federal judge ruled that no asset divestitures will be required as part of remedies in an antitrust case involving the tech giant's internet search business. After the search ruling, Google introduced new Gemini integration across its Chrome browser for all U.S. desktop users. Chrome now features native Gemini access via a dedicated button, allowing users to analyze information and content without switching windows. However, a digital advertising antitrust case could turn out differently. In April, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia ruled that Google has used classic monopoly-building tactics to dominate online advertising. The Department of Justice had claimed Google's dominance of the digital ad market has damaged advertisers and content creators. In September, Brinkema held hearings to discuss possible remedies. The government has stated that Google should sell off its Google Ad Manager, which includes the company's publisher ad server and its ad exchange. The ad servers and the market for ad exchanges sit between buyers and sellers. Brinkema is expected to issue a remedies ruling in early 2026. Google Stock: Big Changes In Search Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format. Google says AI Overviews now has over 1.5 billion monthly active users. OpenAI on Oct. 21 introduced an AI-powered web browser called ChatGPT Atlas featuring agents that complete tasks on the internet. Many tech companies are focused on autonomous, goal-driven AI "agents" that complete tasks on their own. One of the big applications is expected to be online shopping on the behalf of consumers. Google recently announced a new Agent Payments Protocol (AP2), developed with 60 industry partners. Further, AP2 is designed to address authorization, authentication, and accountability in agentic payments. From an accounting view, high depreciation on data center servers is one concern because it lowers earnings. Analysts expect more cost cutting to offset rising depreciation. Google is using AI internally for software coding projects, which could curb hiring. GOOGL Stock: Is It A Buy Or Sell Now? Also, the Relative Strength Rating of GOOGL stock currently stands at 92 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better. Google stock holds an Accumulation/Distribution Rating of A. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral. Further, GOOGL stock holds an IBD Composite Rating of 99 out of a best possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better. Also, as of Nov. 3, GOOGL stock needs to form a new base to be actionable. Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing. YOU MAY ALSO LIKE
