Alphabet Trades Near Highs as Earnings Power and AI Spend Justify a Premium
Investing.com
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•By Itai Smidt
Alphabet (GOOGL) trades near 52-week highs at ~$320, justified by strong Q3 2025 earnings (15.95% YoY revenue growth to $102.35B, 32.99% net income growth), expanding margins, and strategic AI infrastructure initiatives. The company is diversifying beyond search ads through YouTube, Google Cloud (34% YoY growth), and building competitive advantages via TorchTPU chips and the Intersect energy acquisition (10.8 GW capacity). While valuation at 32x earnings is elevated, analysts argue earnings growth into the multiple is realistic given AI monetization potential and infrastructure dominance.