Alphabet stock at record highs as AI partnership talks drive investor optimism

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GOOGL rallies to an all-time high at 208.58

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Sholanke Dele

26.08.2025

Alphabet stock at record highs as AI partnership talks drive investor optimism — Alphabet stock hits a record close

Alphabet Inc. stock extended its rally into Monday, closing at a new record high of $208.58, surpassing its previous all time closing level of $207 set in February. The stock advanced 2.56% on the day, climbing from an intraday low of $205.30 to a fresh peak at $210.50 before easing slightly into the close. This performance built on Friday’s sharp upswing, cementing three consecutive daily upcloses that reflect strong momentum in both technical and fundamental terms.

• Alphabet stock hits record close at $208.58 as Fed signals rate cut.

• Meta cloud deal and AI partnerships strengthen Alphabet’s long-term growth outlook.

• GOOGL RSI enters overbought territory but buyers continue supporting stock momentum.

Friday’s surge was ignited by comments from Federal Reserve Chair Jerome Powell at the Jackson Hole event, where he suggested a possible rate cut in September. Lower borrowing costs typically boost risk assets, and equities responded across the board as the U.S. dollar weakened.

GOOGL stock price dynamic (March - August 2025). Source: Tradingview

Alphabet’s stock rally was further amplified by company-specific news, notably a $10 billion cloud services agreement with Meta, which heightened investor optimism about long-term growth in Alphabet’s cloud division. Reports that Apple is exploring a deal to integrate Google’s Gemini models into a revamped Siri also enhanced sentiment, positioning Alphabet as a key player in the race to dominate generative AI.

Alphabet RSI pushes into overbought territory amid macro support

Alphabet's upward momentum has carried into Tuesday’s premarket session, where GOOGL is trading near $208.15, just shy of Monday’s record close. Technical readings show the daily RSI has pushed above the 70 threshold into overbought territory. While traditionally a warning signal, in the context of strong bullish sentiment, it also reflects persistent buying interest rather than immediate exhaustion.

From a structural perspective, last week’s high at $206.60 has now flipped into support after being breached, establishing a near-term floor should profit-taking emerge. Holding above this level would reinforce the broader uptrend and maintain scope for further record closes in the sessions ahead.

The alignment of supportive macro conditions, major corporate deals, and technical strength leaves Alphabet positioned to extend gains. While short-term retracements are possible after such a run, the underlying sentiment and fundamentals suggest unexpected dips are likely to attract buyers. Investors will continue watching Fed policy expectations and further corporate developments for confirmation of sustained momentum.

Alphabet stock held near $201 after last week’s breakout above the $197.95 triple top. The surge, backed by strong volume, confirmed momentum after Q2 revenue jumped 11.7%.

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