--- 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* ### Related Stocks - [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md) - [GGLS.US - Direxion Daily Googl Bear 1x Shares](https://longbridge.com/en/quote/GGLS.US.md) - [GGLL.US - Direxion Daily GOOGL Bull 2X Shares](https://longbridge.com/en/quote/GGLL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Where will Alphabet be in 5 years? | Alphabet's artificial intelligence (AI) is again gaining momentum. | [Link](https://longbridge.com/en/news/275972218.md) | | AI weekly: Investors nervous about 'AI bubble', XAI co-founders quit | From market nerves growing about a so-called 'AI bubble' to yet more xAI co-founders quitting Elon Musk's firm, Francis | [Link](https://longbridge.com/en/news/275595306.md) | | Did Google's Gemini just say "checkmate" to OpenAI's ChatGPT? | ChatGPT ushered in a new era for artificial intelligence chatbots back in late 2022, but competition has arisen quickly. | [Link](https://longbridge.com/en/news/276006434.md) | | Good content: YouTube TV Plans launch, and this is all you need to know | YouTube TV has launched its new subscription plans, rolling out this week with options including a Sports plan for $64.9 | [Link](https://longbridge.com/en/news/275364170.md) | | How Google Is Turning AI Search into a Shopping Platform | Google is enhancing its AI Search capabilities to create a shopping platform, allowing users to purchase items directly | [Link](https://longbridge.com/en/news/275642486.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.