It was another banner year for Alphabet (NASDAQ:GOOGL), which saw its share price rise by some 66% in 2025. The latter half of the year was especially lucrative, as GOOGL more than doubled in value after hitting an April low.
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The company claims a slot as one of the largest publicly-traded firms in the world, and it is clearly not resting on its laurels. Indeed, Alphabet has estimated that its capex spend for 2025 will fall between $91 to $93 billion, much of it in the AI space.
Top investor Harsh Chauhan believes that the company’s ascent will continue in the year ahead, with AI providing a major catalyst.
“This ‘Magnificent Seven’ company’s growth could accelerate in 2026, which could be enough for it to achieve a $5 trillion market capitalization,” predicts the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Chauhan notes that Alphabet’s market cap is within shouting distance of $4 trillion, meaning it needs to grow by some 32% in value to break through the $5 trillion mark. He foresees that possibility, thanks to Alphabet’s full-stack ability to deliver AI tools and services.
Indeed, Alphabet’s vast reach should give it numerous avenues to take advantage of the growth of AI, explains Chauhan. He cites the company’s chatbots, AI-enhanced search, and in-house computer chips, to name a few.
Moreover, the overall digital advertising market is expected to cross $1.1 trillion in the coming years, explains Chauhan, and Alphabet has numerous AI-focused advertising tools which should contribute to these accelerating revenues.
The company’s Google Cloud business is also clicking, with revenue growing by 34% year over year in Q3 to reach $15.2 billion. Chauhan is also extremely impressed by Google Cloud’s backlog, which grew by a “whopping” $49 billion last quarter to a grand total of $155 billion.
Attractively valued right now, Chauhan argues that it is only a matter of time before GOOGL trades at a premium.
“The market could reward it with a higher sales multiple owing to its accelerating growth, which should be enough for it to achieve the $5 trillion milestone,” concludes Chauhan. (To watch Harsh Chauhan’s track record, click here)
Wall Street is also feeling bullish about GOOGL. With 27 Buys and 7 Holds, GOOGL enjoys a Strong Buy consensus rating. Its 12-month average price target of $327.42 doesn’t reflect much further growth up ahead, however. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.