Did Google Just Reignite The AI Bull Market?

In a market full of hype, Google just delivered the goods. At its I/O 2025 event, the company didn’t just show off flashy demos. It revealed a sweeping AI roadmap that could reshape everything from Search to filmmaking to mixed reality.

While most people are fixated on Nvidia (NASDAQ: NVDA), our top-rated Magnificent 7 stock is still Alphabet (NASDAQ: GOOGL) — with a Zen Rating of B or “Buy”. 

Here’s why Google may have just quietly reignited the AI bull market.

Search, Reinvented

Google is rolling out AI Mode to all U.S. users — giving its Gemini chatbot a permanent tab in Search. Features like Deep Search and AI-generated finance and sports charts are coming this summer. Deep Search coming for free is a particularly big deal, as ChatGPT’s Deep Research tool is only available to paid users. 

For decades, Google Search has been the toll booth of the internet, and investors continue to wonder how it will fare against AI competitors. It’s becoming more and more clear that search will increasingly resemble an AI model itself when it benefits users, which is what AI mode is all about.

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Image and Video AI That Actually Works

Most of us have played with AI image or video tools… and then gone back to real software. Google’s new models, Imagen 4 and Veo 3, are different. Veo can generate realistic video with audio, and even lets creators control virtual cameras or remove objects — capabilities that push well past most consumer AI tools today.

They’re also launching a new app called Flow, which combines Veo, Imagen, and Gemini to create entire scenes and stitch them into longer AI-generated films.

Many assumed that OpenAI’s Sora was the best video model, but after I/O, the consensus seems to be that Google has the best video generation models … creating what the New York Post calls, “eerily realistic scenes,” as you can see here:

Source: New York Post

Gemini Gets Smarter — and More Ubiquitous

Gemini 2.5 now includes an “enhanced reasoning mode” for complex queries like math and code, plus new Pro and Ultra versions built directly into Chrome, Gmail, and Google Meet.

Want to talk to your inbox, translate speech in real-time, or summarize websites across multiple tabs? That’s all here — and already rolling out. This is another advantage of Alphabet’s: it can push its AI tools out to its massive network of users across its other apps and tools. 

The Investment Case

GOOGL has underperformed Nvidia and Meta in the past year — but that might be about to change. Its moat is Search … but AI is a growth lever. Its next wave of monetization could come from AI-enhanced productivity, e-commerce, and developer tools — all while remaining massively profitable and capital efficient.

That’s why GOOGL scores an A for its Financials Component Grade, which factors in cash flows, long-term debt to assets, and more. These kinds of strong financials often lead to outsized gains.

Google also scores an A in one other Component Grade, which you can see by clicking here.

Overall, if you want exposure to AI without betting on hype … Google stock could be the ticket.

👉 See why GOOG is our top-rated Magnificent 7 stock »

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