Mon Nov 17 10:00:00 UTC 2025: Summary:

Alphabet Inc. (GOOG) is considered a strong AI infrastructure stock, receiving a “Buy” rating from TD Cowen based on the growth potential of its autonomous vehicle business, Waymo, and its strong Q3 2025 financial results. Waymo has surpassed one million monthly rides in California and plans to expand to new cities. Google Cloud also performed well, with significant revenue growth driven by AI-related services. However, increased AI infrastructure demand has led to raised capital expenditure guidance. Despite Alphabet’s potential, the article suggests that other AI stocks may offer greater upside.

News Article:

Alphabet Rides High on Waymo and Cloud Growth, But Capital Expenditures Soar

Mountain View, CA – November 15, 2025 – Tech giant Alphabet Inc. (NASDAQ:GOOG) is attracting significant investor interest as a leading player in AI infrastructure, according to recent analysis. TD Cowen reiterated a “Buy” rating for Alphabet, setting a $335 price target, driven by the impressive growth of its autonomous vehicle arm, Waymo.

Waymo has hit a milestone, exceeding one million monthly rides in California. Analyst John Blackledge of TD Cowen projects continued expansion, with plans to launch services in seven new cities by 2026, aiming for one million weekly paid rides by the end of that year. The potential for longer trip distances and freeway access in key cities further bolsters Waymo’s growth prospects.

Alphabet’s Q3 2025 results also impressed, with revenue jumping 16% year-over-year to $102.3 billion. Earnings per share rose 35% to $2.87, fueled by Google Cloud’s standout performance. Revenue for Google Cloud reached $15.2 billion, a 34% year-over-year increase, largely attributed to a surge in AI-related services. The cloud segment saw significant margin expansion and a robust increase in its cloud backlog, signaling strong future growth.

However, the rapid growth in AI infrastructure demand is taking its toll. Alphabet has increased its full-year 2025 capital expenditure guidance from $85 billion to a range of $91-$93 billion, with expectations of further increases in 2026.

While recognizing Alphabet’s potential as an investment in the AI sector, some analysts suggest that other AI stocks might offer even greater potential for returns and lower risk.

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