Google stock (GOOGL) is up nearly 70% over the past twelve months, vaulting to record highs and leaving investors wondering whether they should keep holding after such a powerful run. Analysts argue that Alphabet’s fundamentals justify staying invested. Oakmark Funds portfolio manager Bill Nygren captured that sentiment clearly when he said, “The stock going from $160 to over $300 today has made it look less attractive. [But Alphabet is] still not selling for more than we think it’s worth.”
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Alphabet spent the past year proving that its AI strategy is not merely defensive. The company delivered four consecutive earnings beats and launched the Gemini 3 model while expanding pretax profit by 39% in the third quarter. Even with elevated capital spending, Alphabet widened pretax margins by seven percentage points, a feat that its Magnificent Seven peers struggled to match.
AI Execution Keeps Alphabet’s Earnings Path Intact
Much of Google stock’s past-year surge reflects rising earnings expectations. Shares now trade at roughly 26 times forward earnings, still the second-cheapest multiple among the Magnificent Seven. Analysts believe that valuation is justified because Alphabet’s earnings trajectory continues to climb.
New Street Research analyst Dan Salmon pointed to Google Cloud as a major driver. Wall Street expects the business to grow revenue to about $75 billion in 2026, up from $57 billion in 2025. Robust AI infrastructure spending strengthens this backdrop, with hyperscalers projected to invest roughly $366 billion in equipment in 2025 and more than $534 billion in 2027.
Loomis Sayles portfolio manager Matthew Eagan said the group’s balance sheets offer “easily north of $1 trillion in total borrowing capacity,” giving the hyperscalers virtually unlimited investment firepower.
Gemini 3 Reinforces Alphabet’s Strength in the AI Race
The launch of Gemini 3 showcased Alphabet’s ability to innovate quickly. The new model includes Deep Think, generative user interfaces, and improved “vibe coding.” Oakmark’s Nygren said early reaction to Gemini 3 is “kind of a wow,” adding that Alphabet would need to be “heroically bad” not to be in a co-leadership position in AI.
Evercore ISI analyst Mark Mahaney echoed that view. “GOOGL is no longer a Classic DHQ stock, but the fundamentals and level of innovation here are very impressive,” he wrote, maintaining a $325 target.
For now, analysts say Google stock still deserves a place in long-term portfolios, even after a year of extraordinary gains. Investors can trim if needed, but the consensus is that Alphabet remains an AI winner.
Is Google a Good Stock to Buy?
Alphabet’s stock (GOOGL) continues to carry a Strong Buy consensus, based on 38 analyst ratings over the past three months. Out of those, 31 call it a Buy, while seven recommend a Hold. None of the analysts currently suggest selling.
The average 12-month GOOGL price target sits at $312, which represents 4.12% upside potential.
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