Google-parent Alphabet Inc Class C’s GOOGL shares gained 67% so far this year, outdoing AI and chip behemoth NVIDIA Corp NVDA (up 32%) (as of Nov. 25, 2025). Over the past one month, Alphabet shares surged 18.3% while NVIDIA lost 4.7% (as of Nov. 25, 2025). Let’s delve a little deeper.
Warren Buffett’s Berkshire’s Interest in Alphabet
Billionaire investor Warren Buffett’s Berkshire Hathaway’s end-of-Q3 equity portfolio revealed an unexpected move. Berkshire Hathaway disclosed a new position in Alphabet. The move makes Google-parent Alphabet Berkshire’s 10th largest equity holding at the end of September, according to a regulatory filing, as mentioned on CNBC.
Per a CNBC article, Berkshire Hathaway’s 3Q25 portfolio shows a 14.9% sequential decline in the Apple exposure, while Alphabet was the new addition (read: Is Alphabet Berkshire's New "Mag-7" Favorite? ETFs in Focus).
Why Alphabet?
Alphabet is a prominent player in the “Magnificent Seven” group – NVIDIA, Microsoft, Meta Amazon, Alphabet, Amazon, Apple and Tesla. These seven companies are known for their extraordinary AI initiatives.
Alphabet has been one of the best performers in recent weeks among the Mag-7 group as the company topped estimates on both lines. Revenues and earnings grew handsomely year over year.
It’s not that NVIDIA underperformed in its earnings results. NVIDIA posted $57 billion in revenue, marking a 62% uptick from a year earlier. The surge was driven by huge demand for its chips used in AI data centers.
NVIDIA saw earnings per share of $1.30, which beat the Zacks Consensus Estimate of $1.24 per share while revenues beat the estimate by 4.14% (read: NVIDIA Jumps on Upbeat Earnings & Guidance: ETFs in Focus).
But Alphabet has been foraying into other ventures in recent times. These ventures include entering the space of AI chips that could challenge NVIDIA.
Meta May Tap Google’s AI Chips, Pressurizing NVIDIA
There are reports that Meta Platforms META is in talks to spend billions on Google’s AI chips, signaling fresh momentum for the search giant, per Bloomberg, as quoted on Yahoo Finance. The deal, if it takes place, would be a clear win for Alphabet’s Google.
Meta Weighs Google TPUs for 2027 Deployment
Meta is discussing the use of Google’s tensor processing units (TPUs) in its data centers starting in 2027, The Information reported, citing a person familiar with the talks. Meta may also rent Google Cloud chips next year, according to the report, as published on the above-mentioned source.
Google TPUs Gain Ground as NVIDIA Alternative
TPUs can emerge as a rival to NVIDIA’s GPUs — the preferred choice for tech giants and AI startups building and running artificial intelligence systems. NVIDIA stock fell as much as 3% in premarket trading on Tuesday, while Alphabet shares rose 2.4% amid renewed optimism over its Gemini AI model.
Earlier Anthropic Deal Boosted TPU Momentum
Google has already agreed to supply up to 1 million TPUs to Anthropic PBC, raising questions about NVIDIA’s long-term dominance. Seaport analyst Jay Goldberg called that deal a “powerful validation,” noting that more companies are now considering TPUs, per the same Bloomberg article.
Cheaper Valuation of Alphabet
Alphabet currently trades at a forward price-to-earnings (P/E) multiple of 26.68X versus the tech sector’s P/E multiple of 30.75X and the S&P 500’s P/E multiple of 24.03X, as of Oct. 30, 2025. In comparison, Microsoft shares trade at a forward P/E of 32.31X, marking a richer valuation.
Alphabet has a good Growth score of “B” and Momentum Score of “A.” The GOOGL stock comes from a well-positioned Zacks Sector (top 13%) and Industry (top 33%), as of the time of writing. While NVIDIA also boasts upbeat Growth and Momentum scores, the stock trades at a slightly higher multiple.
ETFs in Focus
Alphabet has a solid exposure to exchange-traded funds (ETFs) like Global X Pure-Cap MSCI Communication Services ETF GXPC, Fidelity MSCI Communication Services Index ETF FCOM , iShares Global Comm Services ETF IXP and Vanguard Communication Services ETF VOX. If you follow Berkshire’s holding pattern and want to bet big on Alphabet, you can follow the above-mentioned ETFs.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports iShares Global Comm Services ETF (IXP): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
