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News  ›  The Motley Fool

Alphabet vs. Amazon: Which Stock Will Outperform in 2026?

The Motley Fool Logo The Motley Fool By Geoffrey Seiler
Alphabet vs. Amazon: Which Stock Will Outperform in 2026?

Alphabet significantly outperformed Amazon in 2025 by shifting investor perception through advances in its Gemini LLM and custom AI chips. However, the author predicts Amazon could outperform in 2026 as AWS accelerates growth, Trainium chips gain traction, and the company benefits from operating leverage in e-commerce and advertising. Both stocks trade at attractive valuations with solid growth prospects.

Insights
GOOG   positive

Strong 2025 performance with ~60% stock gains driven by successful AI perception shift. Gemini LLM is now competitive, TPU chips are highly regarded, and the company has created a powerful flywheel effect combining top-tier AI chips with leading LLM technology.