Alphabet Stock in a ‘Code Red’ AI Arms Race

Alphabet stock has become the centerpiece of the artificial intelligence (AI) story in late 2025. On December 11, 2025, multiple fresh headlines and analyst notes converged on the same idea: Google’s parent company isn’t just surviving the AI revolution — it’s aggressively trying to own it.

From being named the AI stock on investors’ holiday lists, to new leadership for a $90+ billion infrastructure build‑out, to rival OpenAI declaring its own internal “code red,” Alphabet has moved to the heart of the AI arms race. ^[1]

Below is a deep, SEO-friendly breakdown of what’s happening with Alphabet right now, how Nvidia fits into the picture, and what it may all mean for growth investors heading into 2026.

Alphabet: The AI Stock on Every Investor’s Holiday List

A new cross‑posted article on December 10 titled “1 Artificial Intelligence (AI) Stock That Should Be on Every Investor’s Holiday List” singles out Alphabet as the go‑to AI pick for 2026 and beyond. ^[2]

The core thesis:

• Alphabet’s AI investments are now driving the whole business. Revenue growth re‑accelerated in 2025, helped by AI‑enhanced Search, YouTube, and Google Cloud. In the third quarter, Alphabet’s overall revenue grew in the mid‑teens year over year, with AI‑heavy segments leading the charge. ^[3]
• The stock has surged ~70% in 2025 but is still seen as “reasonably valued.” Despite a huge run, the article argues that Alphabet’s forward price‑to‑earnings multiple (around the high‑20s) remains acceptable given its growth, margins, and balance sheet strength. ^[4]
• AI monetization is spreading across consumer and enterprise markets. Google is layering Gemini into Search via AI Overviews, enhancing ad products, and pushing AI deeper into Google Cloud and Workspace, giving it multiple ways to turn AI breakthroughs into revenue. ^[5]

The key message: Alphabet isn’t just dabbling in AI; it’s integrating AI into nearly everything it sells — and doing so from a position of massive scale.