Google is about to replace Nvidia as the world's #1 value company
Two weeks ago, I posted here predicting Intel would reach $50 by earnings. Then it ripped to $54, and many of us printed.
I am posting this today because I see similar hype setup happening right now with Google, but on a much larger, historical scale. I’ve loaded $10k into Feb 6 $375 calls because the risk/reward here is undeniably skewed to the upside.
I ran the numbers based on today’s close, and the path to #1 is shorter than anyone realizes. Nvidia is sitting at roughly $4.62 Trillion while Google is at $3.99 Trillion.
The magic number Google needs to hit to surpass Nvidia is $380.50. That is just a 15.8% move from the current price of roughly $328 based on the close numbers.
Remember what happened when Nvidia first took the top spot? It wasn't just a number, it was a psychological trigger. The moment they hit #1, the FOMO went vertical. Every news outlet ran the headline, ETFs rebalanced, and retail chased the winner. We are sitting right in front of that same wave for Google. Once **we cross $380.50, the "Google is King" headlines start**, and the momentum buying kicks in. We are front-running the entire world realizing Google is the new leader.
Here is the deep dive on why this happens:
**The Apple capitulation leading to mobile dominance**
The "ChatGPT is winning" narrative is officially dead. The most important signal wasn't just Gemini's user count crossing 450 million, it was Apple giving up. Think about the distribution monopoly they just secured. They have Gemini native on 3 billion Android devices, and now they have integration across 1.5 billion iOS devices. Google now owns the AI layer on **100% of the mobile distribution channel**. No other competitor exists at this scale. They have effectively checkmated the entire edge consumer AI market.
**They are cloud leaders**
While everyone focuses on Search, they are missing the explosion in the Cloud division. Google Cloud revenue is accelerating at a rate that is frankly terrifying for Amazon and Microsoft. We are talking about parabolic revenue expansion driven by AI infrastructure demand.
Q3 2025 Revenue: $15.15 billion (up **34% year-over-year**).
Annualized Run Rate: The business is running at an annual pace of roughly $61 billion.
Operating Income: A record $3.59 billion for the third quarter, representing a 23.7% operating margin, indicating rapidly increasing profitability.
Backlog: Google Cloud ended Q3 2025 with a **$155 billion backlog.**
**Google has it's own silicon**
Bears love to complain about Capex, but they are missing the strategic shift. Google has been building its own TPUs for a decade, meaning they don't pay the "Nvidia Tax" that crushes other tech companies margins.
Insider information suggest Google plans to sell these chips to other hyperscalers. Can you imagine Microsoft or Meta running on Google silicon? If they confirm this new revenue stream on the call, the stock goes nuclear. They instantly become a potential top-tier AI chip supplier with massive margins, hell they even speculate they will go for rent model like IREN or CRWV. This is a multi-billion dollar catalyst that is currently not being priced.
**Even the valuation show's google is STILL mispriced**
This is the most critical part - right now the market is paying a massive premium for Nvidia's future while ignoring Google's present cash flow.
Look at the P/E ratio comparison. Right now, you are paying about $32.60 for every dollar of Google's profit (32.6x P/E). For Nvidia, you are paying about $45.80 for every dollar of profit (45.8x P/E). **That makes Google roughly 29% cheaper on a valuation basis.**
If Google were simply valued at the same enthusiastic multiple as Nvidia, its stock price would be roughly $460. We don't even need "hype" to hit $400 target; we just need the valuation gap to narrow slightly.
**Wall Street is quietly loading up**
While retail argues if search is dead, the suits are positioning for a breakout. Look at the targets issued just days ago. Raymond James just upgraded to a Strong Buy with a $400 target. Pivotal Research reaffirmed their Buy rating with a $400 target. Canaccord raised their target to $390. These firms have access to financial data that we don't, and they are all converging on the same number right before the earnings.
**The non digital assets**
There are also non-digital businesses, which are starting to print cash. Pixel 10 sales were up 28% year-over-year in September, capturing **7% of the US premium market** and stealing share directly from Samsung. And Waymo is no longer a side project. They are doing **450,000 paid rides** per week. They are live in Phoenix, SF, LA, and expanding fast. While Tesla promises "next year," Waymo is generating revenue today with driverless cars.
**TLDR**
Google is winning on search, ads, cloud, AI Chip, driverless cars, mobile phones and is about to become the world's most valuable company.
**On Feb 4th earnings call it will surge to the crossover point at $380.50 and after the call to $400.**
I’m holding $375C for Feb 6. I am calling Google at $400. I know that most of you are holding GOOG, so good luck tp us all.
Next earnings: Alphabet Inc. (NASDAQ: GOOG, GOOGL) will hold its quarterly conference call to discuss fourth quarter and fiscal year 2025 financial results on Wednesday, February 4, at 1:30pm Pacific Time (4:30pm Eastern Time).
Link for more info here: [https://abc.xyz/investor/news/news-details/2026/Alphabet-Announces-Date-of-Fourth-Quarter-and-Fiscal-Year-2025-Financial-Results-Conference-Call-2026-\_PQVrgzUKX/default.aspx](https://abc.xyz/investor/news/news-details/2026/Alphabet-Announces-Date-of-Fourth-Quarter-and-Fiscal-Year-2025-Financial-Results-Conference-Call-2026-_PQVrgzUKX/default.aspx)