Following what was an impressive year for the stock market in 2024, Alphabet Inc (GOOGL) is hoping to be a leader in the NASDAQ in 2025. Last year, the stock climbed around 35%. Alphabet made several innovations in technology, as well as quality investments that may bring profit this new year. Out of the other big NASDAQ options out there, GOOGL could be the top choice for investors if it follows its performance last year.

In Q3 2024, the company demonstrated an increased demand for its search and cloud services, due to the advancements in AI. With the AI arms race looking to boost several stocks, Alphabet GOOGL has its eyes on joining the $3 trillion market cap club. Currently, Nvidia (NVDA), Apple (APPL), and Microsoft (MSFT) are the only members of the exclusive club. However, that is likely to change, as analysts are projecting a bigger, more competitive year in the tech industry. Its ongoing investments in AI, which can be highlighted by the Gemini models integrated across its products, position it for long-term growth, according to experts.

Alphabet’s AI Outreach to Propel it Beyond Other NASDAQ Stocks in 2025

Furthermore, Alphabet Inc. is expanding its reach in AI in 2025 with new partnerships. Specifically, Semiconductor design company Synaptics recently unveiled a partnership with Google to advance artificial intelligence capabilities. Synaptics announced the companies would collaborate on enhancing edge AI for the Internet of Things, or IoT, by combining Google’s machine learning core with Synaptics’ Astra hardware and open-source software. The effort is intended to foster the development of AI devices that can process vision, voice, and other sensory modalities.

CEO Sundar Pichai noted that AI solutions are enhancing product adoption among existing customers, attracting new clients, and securing larger contracts. He outlined plans to accelerate AI product launches in 2025 and emphasized the potential of the Gemini AI model to reach 500 million users. Gemini 2.0 Flash is now widely available to developers. With AI expected to drive a projected $200 billion market by 2026, Alphabet’s focus on AI innovation solidifies its competitive edge compared to other NASDAQ stock options.

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Alphabet currently has a market cap of $2.32 trillion. $1.3 trillion asset manager Morgan Stanley predicted the feat to happen this year. Indeed, they expect Google’s parent company will surpass the $3 trillion mark before the end of 2025. Specifically, they note a 16.5% projected increase in annual earnings as the driving factor. With big moves in automotive tech and AI, as well as improved numbers each quarter in 2025, Alphabet (GOOGL) stock could fall under the radar as a great NASDAQ choice this year.

Microsoft has appointed Jay Parikh, a former Meta executive in charge of infrastructure, as its executive vice president for the new artificial intelligence engineering division. 

The new appointee will head several departments, including the company’s developer division AI platform, teams working on AI supercomputers, and agents. He reports to Chief Executive Officer Satya Nadella.

Microsoft has been rebuilding its product roster around Artificial intelligence and is moving to be in charge of complex structural projects that can unleash its network’s ultimate power and efficiency. The partnership between Microsoft and OpenAI has enabled it to take the lead in efforts to build tools that rely on generative artificial intelligence. The firm looks forward to building data centers and chips to support that effort.

Nadella wrote in an email to employees announcing the changes:

As we begin the new year, it’s clear that we’re entering the next innings of this AI platform shift. Thirty years of change is being compressed into three years!

~ Satya Nadella

Parikh’s profile is a good addition to the Microsoft team

Parikh brings over a decade of experience from Facebook, where he worked from 2009 until 2021, contributing to technical infrastructure and data center projects that helped transform the company into a global social network. After leaving Facebook, he became the CEO of the cloud security startup Lacework Inc.

Meta covered more ground and established several data centers around the world with Parikh in charge. During his tenure, most tech firms unplugged their own data centers in preference of renting computing power from Microsoft or Amazon.com Inc. However, Meta never flinched; it remained among the few firms that could build state-of-the-art server farms at a huge scale.

Microsoft is making bold moves in AI to reshape its application category

Parikh’s appointment signals Microsoft’s strong commitment to expanding its involvement in AI. Through its CEO, the company aims to develop model-forward applications that will redefine all categories of applications by 2025

The CEO reiterated that the next phase of the firm’s development will be decided by its ownership of the best AI platforms, tools, and infrastructure. They also have a lot of work to do and tremendous opportunities ahead.

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