Why Google’s Soaring Stock Is Defying Fears of an AI Bubble

Alphabet has risen about 16% since the Nasdaq peak on Oct. 29, while Microsoft, Oracle, Nvidia and Meta have posted double-digit declines. The company’s stock also gained after a court ruling eased breakup worries, and its market value has moved ahead of Microsoft’s.

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• Alphabet has outperformed the rest of the tech group during a rough month for AI-linked stocks.
• The court ruling that ended breakup worries helped extend the stock’s run.
• Google still gets most of its $385 billion annual revenue from advertising.
• Gemini 3 was trained on Google’s own networks using its own TPU chips.
• Google combines frontier-model work, its own chips and its search distribution, which reaches 90% of the world’s internet searches.
• A TD Cowen survey found October usage of Gemini at 26% versus 35% for ChatGPT.
• Alphabet, Microsoft, Amazon, Meta and Oracle spent nearly $321 billion combined on capital spending in the first nine months of the year.
• Alphabet said its capital expenditures will be $91 billion to $93 billion this year, up 75% from last year.
• Alphabet’s capital spending is a smaller share of revenue than Meta’s and Microsoft’s.
• Alphabet carries a lower relative debt load than its big tech peers and has the highest cash balance net of debt among them.
• Alphabet trades at about 29 times projected earnings, higher than in recent years but in line with the Nasdaq and other megacap tech companies.