Alphabet's Gemini (GOOGL) "Came Out of Nowhere," Says Jim Cramer

We recently published 12 Stocks Jim Cramer Talked About.  Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks that Jim Cramer talked about.

Alphabet Inc. (NASDAQ:GOOGL) reported its earnings earlier this week and posted $113.83 billion in revenue to beat analyst estimates of $111.43 billion. The earnings came after Cramer continued to heap praise on the firm throughout January. The CNBC TV host believes that Alphabet Inc. (NASDAQ:GOOGL) is one of the strongest players in several industries, such as AI. Following the earnings, multiple analysts have discussed the firm. For instance, DA Davidson bumped the share price target to $310 from $300 and kept a Neutral rating. The financial firm commented that Alphabet Inc. (NASDAQ:GOOGL) is experiencing growing demand for its cloud computing business and added that the demand appears to be stemming from enterprise users. Cantor Fitzgerald reiterated a $370 share price target and an Overweight rating. Cantor focused on Alphabet Inc. (NASDAQ:GOOGL)’s capital expenditure to comment that while the expenditure was high, the firm’s dominance in AI was comforting. Given his optimism about the company, Cramer discussed Alphabet Inc. (NASDAQ:GOOGL) in detail following the earnings:

“My charitable trust has a small position, we’re looking to buy it. I think you have to buy it. This was a remarkable quarter, don’t pay any attention to the man behind the curtain, the stock price. Fact is that they are using this new compute for Google Cloud, okay? And David, do you know who Lebron James is? And you know who that is when it comes to Google? Okay, they call him Thomas Kurian. . .Thomas Kurian’s the head of Cloud. He’s the Lebron James of Cloud. And this number was so extraordinary, I am not worried. By the way, Schindler, Phillip Schindler did an amazing job with YouTube. I feel that the Gemini uptake is just rather incredible. I just was dazzled by this call. The analysts have to start catching up with how well they’re doing. And then, one more thing. It’s boring. . .the One Big Beautiful Bill, the bonus depreciation, you can just write this stuff off instantly. Because it is in data centers, not regular buildings. So this was just brilliant, people don’t understand, that depreciation makes it so it was worthwhile to buy this stuff now and remember, they are controlling it, they are not offloading it to say, Blue Owl.

“YouTube, did you hear that analyst who said, look I think you’re losing business in advertising? And Schindler who is such a diplomat, said, no you see actually we’re moving towards subscription, subscription’s worth more money. And I’ve met that man, and he is, he’s Bond. So we’ve got Lebron and we’ve got Bond. He is, he’s Bond. He’s shaken, not stirred, that guy.

“[on 750 million MAUs for Gemini] This thing came out of nowhere, it’s obvious that the analysts still are trying to grasp how this could not have hurt Google Search. It clearly hasn’t. I think that this juggernaut, and look it’s gonna be, don’t buy it down ten, because they’re going to take it down 19. People who want to sell it down 20, they’ll sell it down 20. I suggest, I have one idea for the people who are selling it, there’s this thing, it’s called a conference call. You should listen to it before you blow out of it. . . they should at least put it through ChatGPT if not Gemini.”

Hotchkis & Wiley Global Value Fund also discussed Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) is a holding company whose primary subsidiary is Google, which is the largest advertising company in the world. Other than Search, Alphabet’s other businesses are its enterprise cloud platform and venture-stage companies collectively reported as “Other Bets”. The company’s stock outperformed following strong 3Q25 results that beat expectations across the board, increasing investor confidence in the company’s ability to convert AI opportunities into growth. That outperformance continued as Google delivered strong new AI products that appear to be taking material share of Consumer Chatbot activity from OpenAI’s ChatGPT.”

While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.