Alphabet (GOOGL) Enters a New AI Era — What Will It Look Like in 2035?
Alphabet (GOOGL) is entering a new AI-driven era, with significant growth in cloud services and AI integration across its products. In Q3 2025, Alphabet's revenue exceeded $100 billion, with Google Cloud revenue growing 34% year-over-year. By 2035, Alphabet is expected to transform into an AI-and-cloud-centric company, potentially increasing profitability and efficiency. Wall Street maintains a Strong Buy consensus on GOOGL stock, with a price target of $317.35.
Alphabet (GOOGL) is Google's parent company and one of the biggest names in tech. The company has entered a new phase powered by AI, more cloud use, and steady demand across Search, YouTube, Android, and Workspace. Alphabet is already huge, but the next decade could change how it earns money and how fast it grows.
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In Q3 2025, Alphabet posted more than $100 billion in quarterly revenue for the first time. Sales came in at about $102.3 billion, up 16% from last year. Strong AI-led growth in Google Cloud helped lift results and gave a clearer view of where the company may be heading by 2035.
AI and Cloud Could Lift Alphabet's Next Stage of Growth
Alphabet is moving into a new phase as AI and Cloud take on a bigger role. New AI-related wins, such as the Gemini 3 rollout and reports of Meta (META) exploring Google's TPUs, have strengthened this trend. In Q3 2025, Google Cloud revenue grew 34% year over year to about $15.2 billion, driven by demand for AI training and data tools.
Management said AI is now built into almost every major Google product. This includes Search, YouTube, Chrome, Android, and Workspace. Because these products reach billions of people, Alphabet can roll out AI features at a scale few rivals can match.
If demand for AI stays strong, Cloud could become a bigger part of Alphabet's revenue mix by 2030.
Alphabet May Become More Profitable
Alphabet has focused on efficiency over the past few years. It has trimmed headcount in some areas, reorganized teams, and added more automation. These steps, along with stronger sales, helped lift margins in 2025.
In Q3 2025, Alphabet reported an operating margin of around 30.5%. Excluding a major fine, the margin was close to 33.9%, up from just over 32% a year earlier. Google Cloud margins also improved. Cloud earned around $3.6 billion in operating income in the quarter, with margins in the mid-20% range, up from the high teens in 2024.
If these trends continue, Alphabet could see higher profits over the next few years.
What Alphabet May Look Like in 2035
By 2035, Alphabet will likely look more like an AI-and-cloud company than the ad-heavy business it is today. Google Cloud could take up a much bigger share of revenue as demand for AI training, data processing, and enterprise tools grows. AI will sit at the center of Search, YouTube, Android, and Workspace, helping Alphabet earn more from the same massive user base.
Growth may slow as the company gets bigger, but Alphabet may become steadier, more efficient, and more focused on high-value cloud and AI services.
Is GOOGL Stock a Buy, Hold, or Sell?
Currently, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 30 Buys and seven Hold recommendations. The average GOOGL stock price target of $317.35 indicates shares are fully priced at current levels.
