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Alphabet Inc. (GOOG) shares surged 4.97% to $314.55 as of 11:04 AM EST on Monday, November 24, 2025, driven by investor enthusiasm following the announcement of a significant multi-million dollar cloud infrastructure contract with NATO. The deal, which sees Google Cloud partnering with the NATO Communication and Information Agency (NCIA), represents a major strategic win for Alphabet’s cloud division and underscores the company’s growing credibility in the highly competitive sovereign cloud and defense technology sectors.

The stock’s rally contributed to a broader tech sector momentum, with analysts noting renewed confidence in Google’s AI capabilities following recent praise from industry leaders.

NATO Taps Google Cloud for High-Security, Air-Gapped Infrastructure

Google Cloud announced a significant, multi-million-dollar contract with the NATO Communication and Information Agency to deliver highly secure sovereign cloud capabilities using Google Distributed Cloud (GDC) air-gapped technology. The infrastructure will support NATO’s Joint Analysis, Training and Education Centre (JATEC), enabling the organization to modernize its operational capabilities while handling classified workloads in completely disconnected, highly secure environments.

This air-gapped solution ensures that NATO maintains absolute data residency and operational controls, providing the highest degree of security and autonomy for sensitive alliance data across NATO’s member nations.

The partnership represents a critical component of NATO’s digital transformation strategy, allowing the alliance to leverage cutting-edge cloud and AI capabilities while meeting the strictest digital sovereignty requirements. Tara Brady, President of Google Cloud EMEA, emphasized the company’s dedication to supporting NATO’s mission to develop robust and resilient infrastructure.

Antonio Calderon, NCIA’s Chief Technology Officer, highlighted that partnership with industry leaders like Google Cloud is essential for delivering a secure, resilient, and scalable cloud environment that meets the highest standards required to protect highly sensitive data.

Alphabet Extends Market-Leading Run as Shares Surge Nearly 5%

Alphabet’s stock closed at $299.65 on Friday and opened at $310.79 on Monday, climbing to $314.55 by late morning with a gain of $14.90 (4.97%). The stock has demonstrated exceptional performance throughout 2025, with year-to-date returns of 66.30% compared to the S&P 500’s 13.66% gain.

Over the past year, GOOG has surged 90.35%, significantly outperforming the broader market’s 11.99% return. The company’s market capitalization stands at approximately $3.81 trillion, with analysts setting price targets ranging from $185.00 to $345.00, and an average target of $311.69.

The company’s financial fundamentals remain robust, with a trailing P/E ratio of 29.58 and forward P/E of 27.03. Alphabet reported Q3 FY25 revenue of $102.35 billion and earnings of $34.98 billion, with diluted EPS of $10.13 exceeding analyst estimates. The company maintains strong profitability metrics including a 32.23% profit margin, 35.45% return on equity, and $98.5 billion in total cash.

Analyst sentiment remains positive, with 66 “Strong Buy” ratings and 14 “Buy” ratings, as investors increasingly view Alphabet as a leader in AI innovation and cloud infrastructure, particularly following recent endorsements of its Gemini 3 AI model and strategic wins in the defense and sovereign cloud sectors.

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