Alphabet Went From AI Victim To AI Leader In 12 Months: Can Google's Strategy Topple ChatGPT? - Alphabet (NASDAQ:GOOGL)

Core Viewpoint - Alphabet Inc. has transformed from a tech giant facing threats from AI to a potential leader in the AI space within a year, significantly boosting investor sentiment and stock performance [1][2]. Group 1: Stock Performance - Alphabet's shares have surged over 120% since hitting lows of approximately $140 in April [2]. - In 2025, GOOG shares have increased by 64.78%, outperforming its peers in the Magnificent 7 [6]. Group 2: AI Strategy - The shift in perception from AI as a threat to an opportunity has been pivotal, with Alphabet demonstrating its ability to leverage AI technology effectively [2]. - Gemini, Alphabet's AI initiative, is rapidly gaining traction, with user interest growing over 300% year-over-year, compared to 67% for ChatGPT [3]. Group 3: Competitive Landscape - Despite ChatGPT's dominance with an estimated 85% market share, Gemini is closing the gap, although engagement levels remain lower, with Gemini users averaging 4 queries per day compared to ChatGPT's 7.5 [3][4]. - Google's integration of Gemini into its default search engine is a key factor in its rapid growth [3]. Group 4: Broader Business Performance - Google Cloud is experiencing significant growth, with revenue up 34% year-over-year, surpassing competitors like Amazon and Microsoft [5]. - YouTube commands 13% of U.S. TV time, outperforming Netflix, which holds 8% [5].