Finance AI

Alphabet Stock Posts Best Quarter in Two Decades on AI Strength

The stock gained 38% in Q3, according to data, as investors rewarded the growth of its Gemini AI offering.

Olivia Sharp 1 min read 678 views
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Alphabet's stock gained 38% in the third quarter, its best in nearly 20 years, as data showed investors rewarding the company's AI strategy and the growth of its Gemini offering.

A Record-Breaking Quarter

Alphabet's Class A stock (GOOGL) closed the third quarter of 2025 up 38%, its best quarterly performance since the second quarter of 2005, according to Dow Jones Market Data. The company's Class C shares (GOOG) gained 37% for the quarter, their best on record. The surge provided strong validation for the company's artificial intelligence strategy.

The rally marked a significant turnaround from earlier in the year, when the stock was down as much as 24% amid fears that generative AI startups could disrupt its core search business.

AI as a Growth Driver

The third-quarter rally …

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