Alphabet’s AI Ambitions Gain Momentum with Key Milestones

Alphabet US02079K3059

As 2025 draws to a close, Alphabet Inc., the parent company of Google, is demonstrating formidable strategic strength. The firm's aggressive wager on artificial intelligence is progressing on multiple fronts, underscored by two significant announcements this week alongside robust share performance.

Alphabet shares traded ex-dividend yesterday, with the payout set at $0.21 per share. This routine technical adjustment is distinct from any fundamental selling pressure. The equity has appreciated approximately 67% since the start of the year, reflecting sustained confidence in its business model. Investors are now looking ahead to the quarterly earnings report scheduled for February 4th, which will provide clarity on how the company's substantial investments are translating into revenue.

Despite broader market concerns about concentration in the so-called "Magnificent 7" tech stocks, Alphabet's individual trajectory remains strong. Notably, analysis firm Yardeni Research recently concluded its 15-year buy recommendation on this group of giants, yet Alphabet's specific developments continue to support a positive outlook.

Waymo Hits New Operational Highs

In a major update, subsidiary Waymo reported early Tuesday that it is now completing over 450,000 paid passenger rides weekly. This figure represents a marked increase from prior months and signals accelerating adoption of autonomous ride-hailing services across its U.S. operational zones. The company is steadily expanding its fleet coverage within several major metropolitan areas.

This achievement positions Waymo distinctly ahead of competitors like Tesla, which possesses advanced driver-assistance technology but has not yet launched a comparable commercial robotaxi service. The milestone suggests that a long-envisioned future is increasingly becoming a present-day reality. For Alphabet, this translates into growing potential within its "Other Bets" segment, an area historically associated with significant costs rather than revenue.

New AI Hardware Initiative Unveiled

Concurrently, Google has announced the development of its first AI-powered augmented reality glasses, targeting a 2026 release. These devices will feature deep integration with the new Gemini 3 AI model, representing a fresh foray into the wearable technology space. Following earlier experiments with Google Glass, the company is now leveraging advanced large language models to pioneer new revenue streams beyond its core advertising and cloud computing businesses.

The Gemini 3 platform, launched in November 2025, is already reporting impressive traction with over 650 million monthly active users. Alphabet's massive commitment to AI infrastructure—with capital expenditures planned between $91 and $93 billion for 2025—appears to be yielding tangible results across its product ecosystem.

The confluence of Waymo's scaling commercial operations, pioneering hardware projects, and a stable core business underpins the current optimistic sentiment surrounding Alphabet's stock.