Alphabet’s AI-Driven Rally Defies Earlier Breakup Fears
Alphabet shares surged to record highs near $300, completing a 70% rally over twelve months that silenced last year's existential threats. The gains came as Google Cloud's 34% revenue growth outpaced Azure and AWS, while corporate margins expanded despite a near-doubling of capital expenditures to $24 billion.
Warren Buffett's Berkshire Hathaway made a $4.34 billion bet on the tech giant's resilience, a vote of confidence after antitrust rulings and ChatGPT's rise had briefly made Alphabet the cheapest Magnificent Seven stock at 20x earnings. The stock now trades at 26x earnings, with Gemini's AI traffic share nearly tripling to 13.7%.