Two of Big Tech’s heaviest hitters – Alphabet (GOOGL) and Apple (AAPL) – have spent decades shaping the digital world side by side. They have partnered in meaningful ways, from Google Search powering Safari to YouTube living comfortably on iPhones. But now, amid rising artificial intelligence (AI) fervor and legal scrutiny, their relationship is taking another twist.

Both giants are battling headwinds. Apple’s 2025 has been rocky, with iPhone demand softening and regulatory pressure mounting. Alphabet, meanwhile, is entrenched in a high-stakes antitrust trial. At the heart of the case is whether Google’s dominance over online search has shut out competition, especially on mobile devices like the iPhone.

In the middle of this courtroom drama, CEO Sundar Pichai confirmed what had only been whispered. Gemini AI is coming to iPhones this year. Yes, even though Apple has already teamed up with OpenAI for Apple Intelligence. Google needs this move, not just to flex its AI muscles, but to show regulators it can play fair, even with rivals.

In this new AI arms race, the lines between friend and foe blur. While both the Magnificent Seven stocks have stumbled in 2025, which of the tech titans leads in innovation and deserves a place in your portfolio?

The Case for Apple Stock

Apple may not be a bargain, trading at 27.7 times forward earnings and 7.5 times sales, but in this case, premium pricing reflects premium power. Investors remain convinced that Apple’s unmatched ecosystem, brand loyalty, and global reach will keep its growth engine humming.

Apple posted better-than-expected fiscal 2025 second-quarter results on May 1, generating $95.4 billion in revenue, up 5% year over year. EPS climbed 8% to $1.65. CEO Tim Cook credited strong demand for the iPhone 16e, and new Mac and iPad models powered by Apple’s in-house silicon, but it was Apple’s services arm, like Apple TV+, Music, and App Store, that stole the spotlight, racking up $26.64 billion with double-digit growth.

iPhones led the pack with $46.84 billion in sales. Meanwhile, Macs brought in $7.95 billion, and iPads sales surprised with $6.4 billion, thanks to the late-quarter launch of two new models. The Wearables, Home and Accessories segment chipped in $7.52 billion. Apple closed out the quarter with $24 billion in operating cash flow and returned $29 billion to shareholders.   

Globally, Apple broke Q2 records in markets like India, Brazil, and the U.K. The one soft spot was Greater China, where revenue slipped to $16 billion. Cook played down tariff fears, noting that over half of iPhones sold in the U.S. now come from India, with most other hardware made in Vietnam. Apple is not just diversifying manufacturing, it is growing retail too, with new stores planned in India, the UAE, and Saudi Arabia. 

Analysts tracking the company are eyeing a 5.5% year-over-year boost in earnings for fiscal 2025, projecting $7.12 per share. Looking further ahead, they anticipate an even brighter 2026, with a forecasted 8% EPS rise to $7.69, keeping Apple on track for continued growth.

AAPL stock has a consensus “Moderate Buy” rating overall. Of the 37 analysts covering the stock, 18 recommend a “Strong Buy,” four suggest a “Moderate Buy,” 12 play it safe with a “Hold” rating, one has a “Moderate Sell” rating, and the remaining two analysts advise a “Strong Sell.”

The tech stock’s mean price target of $232.78 suggests that it could rally as much as 11% from the current price levels. The street-high of $300 implies potential upside of 43%.

The Case for Alphabet Stock

From a valuation perspective, GOOGL is trading at 16.37 times forward earnings and 5.35 times sales, lower than its historical averages. For a company leading AI innovation, this valuation signals understated strength. Long term, GOOGL stands as a compelling opportunity for investors seeking exposure to transformative technology at a reasonable price. 

On April 24, Alphabet reported stellar Q1 earnings results. While total revenue rose 12% year over year to $90.2 billion, adjusted EPS soared 49% to $2.81, beating estimates by 39.1%. AI was the engine behind it all, supercharging Search, Cloud, and YouTube. 

The rollout of Gemini 2.5, Alphabet’s most advanced AI model yet, made its mark across Google’s products, with Gemini Flash offering a lighter, cost-efficient option for developers. Search brought in $50.7 billion in revenue, up nearly 10%, fueled by AI Overviews, which now reach 1.5 billion users across over 140 countries. Visual tools like Lens and Circle to Search saw fast adoption. Meanwhile, Google Cloud surged 28% to $12.3 billion, powered by generative AI tools and first-mover access to Nvidia’s (NVDA) cutting-edge GPUs.

Despite sustained investments in AI, Alphabet’s financial position remains exceptionally robust, with $95.3 billion in cash and marketable securities and $74.9 billion in trailing 12 month free cash flow. 

Analysts monitoring the tech giant anticipate 2025 EPS to rise 17.3% year over year to $9.43, before surging by 9.2% annually to $10.30 in 2026.

Overall, on Wall Street, GOOGL stock is a “Strong Buy.” Of the 52 analysts covering the stock, 41 rate it a “Strong Buy,” three say it is a “Moderate Buy,” and eight analysts are on the sidelines, rating it a “Hold.”

The average target price of $201.33 implies the stock can rise by 27% from current price levels. 

AAPL Vs. GOOGL: What’s the Bottom Line?

When comparing Apple and Alphabet, the momentum is shifting. In the AI arena, Apple and Alphabet once walked parallel paths, and now, they are on a collision course. 

Apple still dazzles with sleek hardware and services, but it is Alphabet’s AI muscle, infused into Search, YouTube, and Cloud, that is setting the pace. In this race, Gemini’s arrival on iPhones makes Alphabet the one to watch, and maybe to own.