Alphabet Inc (GOOGL) recently announced plans to invest about $75 billion in capital expenditures in 2025. This is up from the consensus of $48 billion. The investment is one of many that the Google developer is planning on making and one that has investors interested.

Year-to-date, Alphabet stock is down 2% in 2025. However, investors cite investments like the latest $75B one as indicators that GOOGL stock is currently underrated. Over the next few years, Google expects continued developments and advancements, especially in AI. Guggenheim Partners expects investors to eventually favor companies that demonstrate clear returns on their AI investments. The firm does see Alphabet as one of these companies, which could result in GOOGL stock climbing in the next few years.

Alphabet’s Moves in AI a Catalyst for GOOGL Stock?

In addition, experts are eyeing what could be a massive upside in connection with an Nvidia-like business for Alphabet. A recent report has noted that the development of TPU and DeepMind could end up being the most valuable aspect of the company throughout the next year. Indeed, the Google parent company could be looking to make waves with this AI expansion business that has $100 billion potential.

Furthermore, Alphabet Inc. is expanding its reach in AI in 2025 with new partnerships. Specifically, Semiconductor design company Synaptics recently unveiled a partnership with Google to advance artificial intelligence capabilities. Synaptics announced the companies would collaborate on enhancing edge AI for the Internet of Things, or IoT, by combining Google’s machine learning core with Synaptics’ Astra hardware and open-source software. The effort is intended to foster the development of AI devices that can process vision, voice, and other sensory modalities.

Also Read: Microsoft (MSFT) Business Eyes $200B in Revenue as Stock Could Soar

For the near future, Wall Street investors are bullish on Alphabet stock. On February 10, analyst Justin Post from Bank of America Securities maintained a “Buy” rating on the stock and a $225.00 price target. According to the firm, the AI search landscape has had several new entrants in the market, particularly ChatGPT. Additionally, Google’s numbers remain strong, especially in terms of searches and ad revenue.