Alphabet Overtakes Nvidia in Year-to-Date Performance Amid AI and Cloud Growth
Alphabet has quietly surpassed Nvidia in year-to-date performance among the 'Magnificent Seven' tech giants, marking a significant shift in investor sentiment. While Nvidia retains its crown with a $4.63 trillion valuation, Alphabet's stock has climbed just over 10% in 2025, outpacing Nvidia's 6.5% gain. The move reflects growing confidence in Alphabet's diversified growth engines beyond advertising.
Three key drivers are fueling Alphabet's ascent: AI-enhanced search and advertising revenue, YouTube's improved monetization through AI tools, and accelerating enterprise adoption of Google Cloud. This trifecta positions Alphabet as a multi-faceted tech leader rather than merely an ad-dependent player.
Nvidia's growth, while still dominant in AI hardware, shows signs of normalization after two years of unprecedented demand. The easing of chip shortages, moderated orders from AI customers, and rising competition from AMD and custom silicon designs have tempered its breakneck expansion pace.
