Alphabet Inc. is increasingly recognized as a major player in the artificial intelligence (AI) infrastructure market, positioning itself among the top stocks for consideration by investors, particularly as hedge funds show rising interest.
On November 13, 2025, TD Cowen analyst John Blackledge reiterated a “Buy” rating for Alphabet Inc. (NASDAQ:GOOG), setting a price target of $335. This optimistic outlook is largely attributed to the notable expansion of Waymo, Alphabet’s autonomous vehicle division, which recently surpassed one million monthly rides in California. This achievement reflects a growing demand for its services, with Waymo actively planning to extend its operations into seven additional cities by 2026, aiming to elevate its weekly paid rides to one million by year’s end.
Blackledge emphasized Waymo’s potential for increasing trip distances and providing freeway access in key urban locations, suggesting that Alphabet is well-positioned to capitalize on the autonomous vehicle market’s growth. Future expansion plans include cities such as Miami, Washington D.C., and London.
Financially, Alphabet Inc. reported strong earnings on October 29, 2025, revealing Q3 revenues of $102.3 billion, a 16% increase from the previous year. The company’s earnings per share rose by 35% to $2.87, driven significantly by Google Cloud’s performance, which generated $15.2 billion in revenue—marking a 34% year-over-year surge, bolstered largely by a more than 200% increase in AI-related services. Additionally, the cloud division’s margins improved from 17.1% to 23.7%, reflecting the growing adoption of AI infrastructure solutions among enterprise customers. Notably, Alphabet also reported a 46% increase in cloud backlog quarter-over-quarter, signaling strong momentum in its future projects.
In light of the rising demands on capital expenditure, Alphabet has raised its full-year 2025 revenue forecast from $85 billion to a revised range of $91-$93 billion, driven by increasing demand for AI infrastructure. Projections for 2026 suggest that this upward trend is likely to continue.
Despite the positive growth narrative surrounding Alphabet, analysts caution that some competing AI stocks may offer more favorable risk-to-reward profiles. Investors are thus advised to consider a range of opportunities that could benefit from current economic shifts and evolving trade policies. As Alphabet continues to expand its influence in the tech space, its strategic moves in the AI infrastructure sector could pave the way for continued success and significant returns for investors.