This Big-Cap Stock Just Hit Records High
This Big-Cap Stock Just Hit Records High
Alphabet (Google’s parent company) is once again in the spotlight after Jim Cramer said he believes the stock still has plenty of room to grow. Despite a strong rally, Cramer thinks Alphabet could climb another 20% from current levels, making it his favorite large-cap stock right now.
Cramer said he does not believe Alphabet’s rally is finished and suggested the stock could eventually reach $400 per share.
Alphabet Hits New Highs After a Strong 2025 Rally
Alphabet shares reached a new all-time high, rising about 2% to $338 per share. This came just one day after setting a previous record close of $334. So far in 2025, the stock has gained an impressive 65%, making it one of the strongest performers among major tech companies.
What stands out is that Alphabet continues to attract investor interest even as enthusiasm for other mega-cap tech stocks starts to cool.
Investors Rotate Away From Other Big Tech Stocks
Many investors have recently moved money away from expensive technology stocks and toward more defensive areas such as industrials, energy, financials, and health care. This shift has weighed on several well-known names in the so-called Magnificent Seven.
Year to date:
- Alphabet is up nearly 5%
- Meta is down 4.7%
- Nvidia is lower by 1.7%
- Tesla has slipped 0.6%
Cramer argues that Alphabet is an exception in this group, saying it remains the strongest opportunity among large-cap tech stocks.
AI Leadership Is Fueling Alphabet’s Momentum
One major reason for Alphabet’s strength is growing confidence in its artificial intelligence strategy. Investors increasingly see the company as a leader in generative AI, especially after several high-profile developments.
The most notable is Alphabet’s multi-year partnership with Apple, which will integrate Google’s Gemini AI models into Apple’s devices. This deal is expected to significantly boost Gemini’s usage and strengthen its position against competitors like ChatGPT.
This momentum helped Alphabet reach a $4 trillion market capitalization, placing it alongside Apple, Microsoft, and Nvidia.
What Needs to Go Right for Alphabet to Keep Rising
According to Bank of America, Alphabet still needs to deliver on several key areas for the stock to move higher:
- Continued leadership and performance from Gemini AI
- Cost efficiency driven by its custom Tensor Processing Units (TPUs)
- Improved search monetization, especially as AI becomes more integrated into search results
The bank noted that current investor sentiment suggests the AI investment cycle is trending positively for Alphabet, which supports the bullish outlook.
Stock Outlook and Price Targets
While enthusiasm remains strong, some investors are choosing to wait before buying more shares after the recent run-up. Alphabet is currently trading above earlier purchase levels, which makes patience important for new buyers.
At present, a $350 price target remains in place among some analysts, reflecting optimism but also acknowledging the need for continued execution.
Bottom Line: Why Alphabet Stands Out
Alphabet’s combination of strong earnings performance, AI leadership, and strategic partnerships has helped it outperform many of its peers. Even after a historic rally, market watchers like Jim Cramer believe the stock still offers meaningful upside if current trends continue.
For long-term investors focused on big-cap tech, AI innovation, and durable growth, Alphabet remains one of the most closely watched stocks in the market.
Disclaimer
This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Stock market investing involves risk, including the potential loss of principal. Always conduct your own research or consult a qualified financial professional before making investment decisions.
Read Next
All Categories
Tags
