Dear Reader,
China just shocked the world.
A team of engineers created a quantum computer that solved a problem in 200 seconds that would take our fastest supercomputers over 500 million years.
That's not a typo. Five hundred MILLION years.
But that’s not the most interesting part of all this…
The breakthrough material that made this possible? It's manufactured by a little-known American company that Wall Street has almost completely overlooked.
It’s currently trading for under $20…
But my estimates show it could become a $300 stock in the coming years.
Discover the hidden opportunity.
Regards,
Marc Lichtenfeld
Chief Income Strategist, The Oxford Club
Alphabet's Breakout Potential: From Laggard to AI Leader
Written by Ryan Hasson. Published 8/22/2025.
Key Points
- GOOGL has rallied more than 42% off its lows, delivered strong Q2 earnings, and is outperforming both peers and the broader market in recent months.
- An impressive nuclear energy deal to power data centers and a $10B AI cloud partnership with Meta highlight Alphabet’s positioning as a leader in AI scalability and sustainability.
- With GOOGL reclaiming key resistance levels and building relative strength, a breakout above $207.50 could pave the way for fresh highs.
Alphabet (NASDAQ: GOOGL) hasn't shared the spotlight with its Magnificent Seven peers for much of this year. While the broader market and mega-cap tech names sprinted ahead in the first half, GOOGL lagged. But that trend is beginning to reverse.
The stock is up more than 42% from its 52-week low, delivered better-than-expected Q2 earnings, and is posting stronger relative strength. Over the past quarter, GOOGL has gained over 18%, outpacing not only many of its peers but also the broader market. Most notably, on Thursday, it was the only Magnificent Seven stock to close in positive territory—a clear sign of growing leadership.
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Get my full take on this exciting play right here…Despite being up just 5.5% year-to-date, the recent acceleration and a steady stream of catalysts suggest Alphabet may be transitioning from laggard to leader in the second half. GOOGL has staged an impressive comeback and is building a vertically integrated AI infrastructure pipeline, potentially rekindling Wall Street optimism.
A Nuclear-Powered Future for AI
A standout development is Alphabet's push into nuclear power to fuel its data centers. In a first-of-its-kind agreement, Alphabet, Kairos Power, and the Tennessee Valley Authority (TVA) will supply 50 megawatts of nuclear-generated electricity to data centers in Tennessee and Alabama. This deal makes TVA the first utility to purchase power from a next-generation GEN IV reactor and marks the initial deployment of Kairos's Hermes 2 plant.
This isn't just a short-term solution. Under a broader agreement, Kairos will deliver up to 500 megawatts of nuclear energy to Alphabet by 2035, with the Hermes 2 facility ramping up to 50 megawatts by 2030. For Alphabet, the move underscores its commitment to reliable, clean, and scalable energy for its growing AI workloads. As AI data centers consume massive power, this partnership not only addresses energy demand but also positions Alphabet as a leader in sustainable infrastructure innovation.
A $10 Billion AI Cloud Deal With Meta
Another catalyst behind GOOGL's recent strength was a reported six-year, $10 billion cloud services deal between Meta Platforms (NASDAQ: META) and Alphabet. Under the agreement, Meta will run AI workloads and related services on Google Cloud's infrastructure.
This partnership underscores rising demand for Google Cloud amid accelerating AI adoption and highlights Google's strategic role in the broader AI ecosystem. By securing a deal with a rival mega-cap, Alphabet not only gains a lucrative revenue stream but also cements its position as a critical enabler of generative AI innovation. Cloud remains a key growth engine, and arrangements of this magnitude could drive significant top-line expansion in the years ahead.
Technicals Point to More Upside
From a technical standpoint, GOOGL's chart is flashing bullish signals. After trading in a sideways range most of the year, the stock has re-entered its late-2024 channel between $190 and $200. It briefly pushed above $200 before pulling back, but instead of breaking down, it appears to be establishing a higher low within this new uptrend.
If GOOGL can reclaim and hold $200—while sustaining relative strength versus the broader market—it sets the stage for another leg higher. A break above its 52-week high of $207.50 could pave the way for fresh highs, particularly if the steady drumbeat of positive news continues.
Combined with strong Q2 earnings, easing regulatory concerns, and consistent momentum, Alphabet looks well-positioned both technically and fundamentally.
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