Investopedia·2025-11-17 23:35Core Insights - Alphabet's stock has seen significant gains in 2025, outperforming its peers in the Magnificent Seven tech stocks group [1] - Berkshire Hathaway has made a substantial investment in Alphabet, acquiring 17.8 million shares valued at nearly $5 billion [2][3] - The investment has led to a rise in Alphabet's stock price, which increased by over 3% following the announcement [3] Investment Activity - Berkshire Hathaway's purchase of Alphabet shares is notable as the firm typically invests in undervalued, stable companies, making this tech investment relatively unusual [4][5] - Alphabet's stock has risen approximately 50% since the beginning of the year, with gains primarily occurring after mid-July [5][7] Analyst Sentiment - Analysts are generally optimistic about Alphabet, with many raising their price targets following a strong earnings report [7][9] - JPMorgan analysts increased their price target by 13%, citing strong performance and potential in AI search opportunities [8] - The average price target among analysts is $324, representing a 14% upside from the stock's recent closing price [9] Capital Expenditure Plans - Alphabet has raised its full-year capital expenditures guidance to over $90 billion, focusing on data centers and AI model development [8]