Alphabet (GOOGL) AI craze slams into technical resistance
|Shares of Alphabet (GOOGL) are once again trading higher. The latest darling for AI investors is trading at $332, making it the latest mega cap to tag a $4 trillion market cap. GOOGL has gained 136% since the April 2025 lows. That means a market cap gain of over $2 trillion in 8 months.
However, euphoria may be marking the top. GOOGL is slamming into a parallel channel that goes back to the bull highs of 2021. The lower trend line connects through the 2023 and 2024 lows perfectly. In addition, this marks the eighth.
On the fundamental side, the driver has been Gemini 3, said to be superior to ChatGPT. In addition, Meta Platforms (META) appears to be eyeing Alphabet chips instead of Nvidia (NVDA).
While these fundamental factors are helpful, the stock price of GOOGL should fully reflect these positives, at least for a near-term correction. A pullback to $255 in 2026 looks likely.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.