Google’s Stock Surge Outpaces Tech Peers Amid AI Transformation
Google defied skeptics with a 65% stock surge in 2025, marking its strongest annual performance since 2009. The rebound followed an 18% Q1 plunge as AI competition intensified, with OpenAI's ChatGPT and Sora eroding Gemini's user base. Advertisers began migrating to AI-native platforms, threatening Google's search dominance.
The turnaround crystallized in April when 16-year veteran Josh Woodward took Gemini's reins. His team launched Nano Banana in August—a viral image-blending tool that processed 5B+ creations by September, dethroning ChatGPT on Apple's App Store. Simultaneously, Google poached Varun Mohan's Windsurf AI engineering team after their $3B OpenAI deal collapsed.