Google stock wraps best year since 2009 as AI excites Wall Street

After a challenging start to the year, Google finished 2025 with its most robust performance in the eyes of Wall Street since 2009. Alphabet’s stock surged 65% for the year, surpassing its gains in 2021. Despite hitting a low point in April, the shares bounced back over 100%.

Among the tech giants valued over $1 trillion, Alphabet saw the most significant increase. Chipmakers Broadcom and Nvidia also experienced notable gains of 49% and 39%, respectively.

To reach this milestone, Google had to overcome doubts about its future in the AI era. With competitors like OpenAI gaining traction and concerns about the impact of AI on online advertising, Google faced challenges.

Despite a rough first quarter with an 18% drop in Alphabet’s stock, the company saw improvements in the second quarter. Key developments like the promotion of Josh Woodward to lead the Gemini app and the success of image generator Nano Banana boosted Google’s position.

Google’s AI expertise expanded with the acquisition of AI coding startup Windsurf, strengthening its talent pool.

A court ruling in Google’s favor provided a positive turn of events. Despite previous antitrust challenges, Google avoided severe consequences in a recent ruling, allowing it to continue its operations.

Gemini’s advancements have been a significant highlight, with the launch of Gemini 3 showcasing Google’s commitment to AI innovation.

Analysts recognize Google’s strength in AI and cloud computing, positioning the company for future growth.