How Is Alphabet’s Stock Performance Compared to Other Mega-Caps?

Core Insights - Alphabet Inc. is a leading global technology company with a market capitalization of $3.86 trillion, classifying it as a "mega-cap" stock and a member of the "trillion-dollar club" [2][4] Financial Performance - GOOG's stock reached a 52-week high of $328.67 on November 25, but has since declined by 4.1% from that level [2] - The stock has gained 47.6% over the past three months, significantly outperforming the Vanguard Mega Cap Index Fund, which gained 6.6% during the same period [2] - Over the past 52 weeks, GOOG's stock has increased by 84.8%, and by 82.3% over the past six months, while the Vanguard Mega Cap Index Fund has only increased by 15.7% and 17.2% respectively [3] Market Position and Growth Drivers - Investors are optimistic about Alphabet's growth potential, driven by advancements in AI and cloud operations [4] - Morgan Stanley analysts project that Alphabet's on-demand business will grow by 15% or more, with an expected additional $50 billion in net backlog over the next year, potentially doubling Google Cloud's revenue growth rate from 25% in 2025 to over 50% in 2026 [5] Technological Advancements - The demand for tensor processing units (TPUs) is increasing as Google Gemini's user base grows, with TPUs being more efficient for AI workloads compared to traditional GPUs [6] - There are indications that Meta Platforms, Inc. is considering transitioning to Google TPUs for its data centers [6]