Alphabet Inc.'s fourth-quarter earnings release will be out later today, with analysts anticipating the company’s net income and earnings per share to come in at $26.2 billion and $2.12, respectively, a significant growth from $20.7 billion and $1.64 registered in the same timeframe a year ago. Revenue is also expected to grow from $86.3 billion recorded in the last quarter of fiscal 2023 to $96.6 billion in this quarter.
The tech giant's commitment to the development of artificial intelligence (AI) remains the catalyst for investor enthusiasm, with most analysts covering the stock tracked by Visible Alpha giving it the "buy" rating. In December of 2024, Alphabet's subsidiary, Google LLC, released its most advanced AI model to date Gemini 2.0, with CEO Sundar Pichai hoping that the chatbot will hit the 500 million user mark by the end of 2025. Meanwhile, independent analyst and consultancy firm Omdia stated that the demand for Google's AI-powered Tensor Processing Unit (TPU) chips is growing, adding that this could affect Nvidia Corp.’s popularity.
Recently, the United States tech industry was in an uproar over the latest technology advancements in China, with DeepSeek showing the world that it can create superb software, rivaling that of the US firms, for less money and with less capable semiconductors. During this mayhem, Alphabet lost some $90 billion in value but managed to somewhat recover. On a monthly basis, the business' A class and C class shares were up some 4.9%.
Overall, Pichai's conviction that AI is the future is likely to continue pushing Alphabet stock higher this year.
