Jim Cramer's 'Best Contract in the World' for GOOGL: Does Apple's Gemini Partnership Open a New AI Era?

Jim Cramer has positioned Alphabet Inc. (GOOGL) as one of his favorite stocks after initially being wary of the firm in the first half of 2025. The CNBC host has praised the company for its strengths in AI, search engines, video streaming, cloud computing, and quantum computing. GOOGL shares have risen by 96.7% over the past year and 13.3% year-to-date. Needham Research maintained a $450 share price target and a 'Buy' rating for GOOGL. Cramer highlighted the company's partnership with Apple, calling it 'the best contract in the world' due to its embedded nature. 'Gemini has the best contract in the world, which is the Apple contract. Because that's embedded,' he said. GOOGL now has a market capitalization approaching $4 trillion. L1 Capital International Fund noted that GOOGL's share price has more than doubled over the past 12 months, reflecting strong performance in core Search, continued momentum in Google Cloud Platform, and better-than-expected progress in AI (Gemini). While investors seek AI stocks with higher potential and shorter-term returns, analysts believe GOOGL's leadership position in the sector remains strong. This development aligns with the company's ongoing success in its AI-focused strategy.

GOOGL's partnership with Apple for Gemini is reshaping competition in the AI sector. There is a strong argument that this strategy will boost the company's value in the long run, though markets are watching how the move will impact share prices in the short term.