I Predicted Alphabet Would Be the Best-Performing "Magnificent 7" Stock in 2025. Here Are the Main Reasons Why It Actually Happened.

Heading into 2025, I predicted that the best performer among the so-called "Magnificent Seven" stocks for the year would be Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). That proved to be the correct call, as the stock climbed more than 65%, finishing well ahead of second-place performer Nvidia (NASDAQ: NVDA), which gained nearly 39%.The biggest reason behind Alphabet's outperformance in 2025 was that it was able to change investors' perceptions about the impact of artificial intelligence (AI) on its business. The company's Gemini model gained widespread praise as being a top large language model (LLM), and investors began realizing the importance of its tensor processing units (TPUs), which are the custom chips it uses to train its model and run AI inference.With the help of AI Overviews and AI-powered features like Lens and Circle to Search, the company began to see its Google search revenue accelerate. It then caught a break, when the judge in its antitrust trial ruled it could not only keep its Chrome browser and Android smartphone operating system, but that it could also still make deals to be the default search engine of Apple devices. This removed an overhang and let the company keep its huge distribution advantage, which ensures that Google remains the gateway to the internet for most people. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool