In a bullish stance for Alphabet, CNBC’s Jim Cramer has asserted that the tech giant’s stock can rally another 20% following its impressive growth in 2025. During a segment on “Squawk on the Street,” Cramer expressed confidence in the company’s trajectory, stating, “I don’t think Google stops here… I think Alphabet goes straight shot to $400.”
Alphabet’s shares experienced a significant uptick, reaching an all-time high of $338 on Tuesday, a 2% increase from the previous day’s record close of $334. The stock has seen an extraordinary 65% gain so far in 2025. Despite recent shifts in investor sentiment favoring defensive sectors such as industrials, energy, financials, and healthcare, Alphabet continues to attract interest. Cramer highlighted the trend within the market, saying, “The market has really soured on these big-cap names,” yet underscored Alphabet as a standout performer that is anticipated to climb higher.
In this context, Alphabet has seen nearly a 5% increase at the beginning of 2025, contrasting with slight declines in other major tech stocks. Meta Platforms has dropped 4.7% year-to-date, Nvidia is down 1.7%, and Tesla has seen a decrease of 0.6%. The positive sentiment around Alphabet has been bolstered by its advancements in generative AI technologies, most notably through a multi-year partnership with Apple, enabling the integration of Google’s Gemini AI models into Apple products. This collaboration is projected to significantly boost the usage of Gemini, positioning it as a leading large language model, rivaling OpenAI’s ChatGPT.
Amidst these advancements, Alphabet’s market capitalization has soared to $4 trillion, placing it alongside tech behemoths like Nvidia, Microsoft, and Apple. For continued positive performance, Bank of America has underscored the necessity for Alphabet to maintain its innovative edge with Gemini, leverage cost advantages from custom tensor-processing units (TPUs), and enhance search monetization.
The sentiment around Alphabet suggests an optimistic outlook for its stock performance, with Bank of America noting that the “AI cycle is moving in the right direction” for the company. For the Investing Club, there is a desire to bolster the position in Alphabet, which was initially established in late December. However, with the stock currently trading above its cost basis, they plan to wait for a pullback before increasing their holdings, while maintaining a price target of $350 and assigning a positive rating to the stock.
