---
title: "Alphabet Went From AI Victim To AI Leader In 12 Months: Can Google's Strategy Topple ChatGPT?"
description: "Alphabet Inc. has transformed from an AI-threatened giant to a leader in AI within a year, with shares rising over 120% since April. Investor sentiment has shifted from viewing AI as a threat to seein"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/271318478.md"
published_at: "2026-01-02T08:30:53.000Z"
---

# Alphabet Went From AI Victim To AI Leader In 12 Months: Can Google's Strategy Topple ChatGPT?

> Alphabet Inc. has transformed from an AI-threatened giant to a leader in AI within a year, with shares rising over 120% since April. Investor sentiment has shifted from viewing AI as a threat to seeing it as an opportunity, largely due to the success of Gemini, which is rapidly gaining user interest. Google Cloud is also performing well, with a 34% revenue increase year-over-year. Alphabet's stock has surged by nearly 65% in 2025, outperforming its peers, while YouTube continues to dominate U.S. TV time.

**Alphabet Inc.** (NASDAQ:GOOG) (NASDAQ:GOOGL) has successfully flipped the script on Wall Street, transforming from a tech giant threatened by artificial intelligence (AI) to a potential “King of AI” in just one year.

## **The Great Narrative Shift**

According to **Landon Swan**, co-founder of LikeFolio, a massive change in investor sentiment has fueled Alphabet's recent stock surge. Since hitting lows of roughly $140 in April, shares have climbed more than 120%.

Swan notes that Wall Street has moved from fearing AI as a “giant threat” to Google's search monopoly to viewing it as a “giant opportunity.”

Swan admits that while he once viewed AI as a danger to the company, Alphabet is now proving it can leverage the technology better than almost anyone else, driving a transition from skepticism to “very, very bullish optimism.”

**See Also: Google’s Gemini Eating ChatGPT’s Lunch: Market Share Gain From 5% To 18% Is ‘Clearest Signal’ That Alphabet Is Winning AI War**

## **‘In Your Face’ Strategy**

Central to this resurgence is Gemini, Alphabet's answer to OpenAI. While ChatGPT remains the dominant market leader with an estimated 85% share, Swan points out that Gemini is “closing fast.”

LikeFolio data indicates Gemini's user interest grew over 300% year-over-year, compared to 67% for ChatGPT.

Swan attributes this rapid catch-up to Google's “in your face” strategy—integrating Gemini directly into the default search engine used by billions.

However, a gap in engagement remains: ChatGPT daily users average 7.5 queries per day compared to just 4 for Gemini users.

## **Dominance Beyond Search**

The bullish case extends beyond chatbots. Swan highlights that Google Cloud is “crushing it,” with revenue up 34% year-over-year—outpacing growth from competitors **Amazon.com Inc.** (NASDAQ:AMZN) and **Microsoft Corp.** (NASDAQ:MSFT).

Furthermore, YouTube continues to dominate the living room, commanding 13% of U.S. TV time versus **Netflix Inc.**'s (NASDAQ:NFLX) 8%.

With its “content machine” model and expanding cloud dominance, Alphabet is effectively firing on all cylinders.

## **Alphabet Delivers About 65% Returns In 2025**

GOOG shares have surged by 64.78% in 2025, outpacing the gains of all its Magnificent 7 peers during the same period.

On the last trading day of the year, the stock closed 0.28% lower at $313.80 apiece on Wednesday.

**Benzinga’s Edge Stock Rankings** indicate that GOOG maintains a stronger price trend over the short, medium, and long terms, with a poor value ranking. Additional performance details are available here.

**Read Next:**

-   Sundar Pichai Introduces Gemini 3 As Google's ‘Most Intelligent' AI Model: ‘Get What You Need With Less Prompting'

***Disclaimer:** This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.*

*Photo courtesy: Shutterstock*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
