Can Alphabet Stock Rally Another 60%+ in the Next Decade? Here's What the Numbers Tell Us

Alphabet has made a stunning 62% move higher in 2025, riding the wave of solid earnings and a commanding presence in AI innovation. But the real question isn’t whether it’s had a good year—it’s whether this tech giant has more runway ahead.

The Math Behind a Potential Doubling

History shows that Benjamin Graham was right: stocks eventually reflect the underlying business. For Alphabet, that means future share appreciation hinges on earnings expansion. Over the past five years, the company’s net income has grown at a 26% compound annual rate. Wall Street is modeling 17% yearly earnings-per-share growth through 2027, but there’s reason to believe double-digit expansion persists beyond that window.

If earnings continue accelerating at even modest double-digit rates, don’t be shocked to see Alphabet’s valuation catch up by 2030. The stock could easily trade at significantly higher levels as profitability widens.

AI is Rewriting the Playbook for Digital Advertising

Here’s where it gets interesting: digital advertising still accounts for roughly three-quarters of Alphabet’s total revenue. That’s the core engine, and it’s getting a serious upgrade.

The company is deploying AI tools to transform how advertisers target audiences and how users interact with Alphabet’s ecosystem. Better ad targeting drives higher conversion rates. Improved user engagement expands the ad inventory. More inventory means more pricing power. It’s a compounding loop that benefits everyone in the ecosystem.

Whether you’re a marketer hunting for precise customer segments or a user scrolling through search results, AI integration is reshaping the experience—and Alphabet stands to capture significant upside from this transformation.

The Investment Case

Alphabet’s combination of fortress earnings power, dominant market position, and legitimate AI advantages creates an intriguing setup for the next five years. The question isn’t whether growth will continue, but how much runway remains. The fundamentals suggest there’s still considerable upside for patient investors willing to own this tech heavyweight through the decade.