Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) has seen its AI chatbot, Google Gemini, gain rapid popularity, positioning the company to compete strongly against ChatGPT in the consumer AI market. This surge in adoption, along with Alphabet’s strong cloud, chip, and subscription businesses, provides a robust growth backdrop for GOOGL stock. Medium- and long-term investors may find the current valuation attractive despite ongoing legal risks.

About GOOGL Stock

Alphabet, headquartered in Mountain View, California, operates Google, YouTube, and Google Cloud. Its AI offering, Gemini, is quickly winning fans among tech enthusiasts and mainstream users alike.

As of February 6, 2026, Alphabet’s market capitalization stood at $3.9 trillion. Year-to-date, GOOGL stock had gained 3%, outperforming the S&P 500 ($SPX), which rose 2%. The forward price-earnings ratio of the shares is approximately 29.6 times, reflecting solid growth expectations.

Gemini Becomes a Core Asset

Recent data shows that Google Gemini has rapidly expanded its share of the AI platform and app markets, climbing to 24.8% and 14.3%, respectively, from 6.4% and 9.8% a year prior. The number of monthly active users exceeded 750 million, demonstrating the platform’s fast adoption curve.

Industry experts and analysts have praised Gemini for its reasoning and capabilities. Tom’s Hardware highlighted its advantages over ChatGPT in key areas, while Forbes Senior Contributor Peter Cohan described Gemini 3 as “far more useful” and superior in reasoning to ChatGPT.

Gemini’s strength has helped Alphabet secure a notable AI deal with Apple (NASDAQ:AAPL), potentially boosting user adoption and generating new revenue streams through Siri integration.

Alphabet’s Other Businesses Fuel Growth

Alphabet’s growth is not solely reliant on AI. Key areas contributing to its strong Q4 performance include:

• YouTube paid subscriptions exceeding 325 million, rivaling Netflix (NASDAQ:NFLX).

• Google Cloud revenue rising 48% YoY in Q4.

• AI chip development gaining traction in enterprise and consumer markets.

These drivers contributed to 14% YoY sales growth and a 35.6% jump in net income in Q4, reinforcing Alphabet’s position as a diversified technology leader.

Legal Challenges Pose Risk

Alphabet faces ongoing legal scrutiny. A judge recently ruled that competitors can annually compete to replace Google as the default search engine on iPhones, a decision now under appeal. The Department of Justice is also appealing for stricter penalties, including potential divestiture of Chrome or other restrictions. These unresolved legal issues add risk to GOOGL stock and could impact share performance in the future.

Bottom Line: GOOGL Stock Is a Buy

Despite regulatory and legal risks, Alphabet’s strong growth in AI, cloud computing, chips, and subscription services provides multiple catalysts for long-term upside. Google Gemini’s rapid adoption and revenue potential enhance the company’s competitive moat.

Given the attractive valuation and high growth potential, GOOGL stock presents a compelling risk-reward profile for medium- to long-term investors, making it a strong buy for those focused on future technology leadership.