Microsoft or Google: the better AI investment for 2025?
The AI race is heating up, and two of the biggest contenders are Google and Microsoft. Both are pouring billions into cutting-edge tech, snapping up talent, and rolling out AI-powered tools at lightning speed. But which of these tech titans offers the better upside for investors in 2025? Let’s dive into their AI ambitions and see which stock could lead the way.
Snapshot: Google vs. Microsoft – composition, volatility, and appeal
➡ Google (Alphabet Inc.)
- Ticker: GOOGL / GOOG
- Sectors: AI, Cloud Computing, Advertising, Search, YouTube, Android OS
- Market appeal: Google is a tech behemoth with dominant positions in online advertising and search. Through DeepMind and Google Cloud’s Vertex AI, it’s a leader in AI research and implementation.
- Volatility: Moderate; influenced by ad revenue, regulatory concerns, and tech sector momentum.
- Why trade: High liquidity, strong fundamentals, growing cloud segment, and cutting-edge AI projects.
- Investor appeal: Long-term innovation potential, with room to monetize AI across various consumer platforms.
➡ Microsoft
- Ticker: MSFT
- Sectors: AI, Cloud Computing, Software, Gaming, Productivity Tools
- Market appeal: A global software powerhouse, Microsoft’s AI footprint is expanding rapidly thanks to its Azure platform and partnership with OpenAI (ChatGPT).
- Volatility: Generally lower than Google’s, with strong cash flow and a wide enterprise customer base providing stability.
- Why trade: Strong AI growth pipeline, consistent performance, and a diversified revenue base.
- Investor appeal: Enterprise AI adoption, cloud leadership, and consistent dividend payouts make Microsoft a favorite among long-term investors.
✅ Look beyond just stock price — check which sectors each company is expanding into (like cloud or productivity tools).
✅ Volatility can mean opportunity for traders, while stability may appeal more to long-term investors.
Google vs. Microsoft: 10-year performance and outlook for 2025
Historical performance (2015–2024):
- Google (Alphabet): Over the past 10 years, Alphabet’s stock has delivered strong gains, rising over +300% thanks to ad revenue growth, YouTube expansion, and cloud services.
- Microsoft: Microsoft has outperformed even Google over the same period, delivering over +400% returns, driven by Azure cloud adoption, recurring enterprise revenue, and digital transformation trends.
AI-focused outlook for 2025:
- Google: Upside depends on how effectively Alphabet monetizes AI in Google Cloud and consumer products. Potential catalysts include expansion of Vertex AI, integration into search, and DeepMind breakthroughs.
- Microsoft: With Azure AI and direct integration of OpenAI models into Office 365, Microsoft is already monetizing AI at scale. Enterprise demand for AI-driven tools positions it well for continued growth in 2025.
✅ Verdict: Microsoft appears to have a more visible monetization pathway through enterprise services, giving it stronger near-term upside in 2025. Google may offer greater long-term potential as its AI products scale.
Google vs. Microsoft: how to trade
Trading approach:
- Swing trading: Capitalize on quarterly earnings and product launch cycles.
▶ More about: Forex swing trading
- Long-term investment: Hold based on fundamental AI growth trends.
- CFDs (Contracts for Difference): Trade price movement without owning the underlying stock.
- Options trading: Speculate on direction with limited risk.
Example 1 – CFD trading:
- Trader A believes Microsoft stock will rise after its AI developer conference.
- Opens a long CFD position on MSFT at $400.
- Sets a take profit at $420 and a stop loss at $390.
- If the price hits $420, the trader earns a profit based on leverage used.
Example 2 – swing trading Alphabet:
- Trader B anticipates a positive earnings report for Google due to strong cloud AI adoption.
- Buys GOOGL at $140.
- Sells after earnings at $152.
- Net gain: $12 per share, or more with leveraged instruments.
Example 3 – investing with AI ETFs:
- Investors wanting exposure to both can consider tech-focused or AI ETFs (e.g., QQQ, BOTZ), which hold both Google and Microsoft stocks.
⚡ Use demo accounts on brokers like HF Markets or AvaTrade to test swing trades or CFD strategies before going live.
🎯 Set clear entry, stop-loss, and take-profit levels based on technical indicators or company news cycles.
Top FX brokers to trade Google and Microsoft AI stocks
Here are some top-rated brokers that offer Google and Microsoft stock trading via CFDs, allowing traders to benefit from rising or falling prices:
HF Markets
- Trade GOOGL and MSFT as CFDs with low spreads
- MetaTrader platforms with advanced charting tools
- Supports EA trading and offers VPS for bots
- Regulated and offers negative balance protection
eToro
- Fractional stock trading and social copy trading
- Trade actual shares or via CFDs
- Low commission on real stock trades
Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
AvaTrade
- Wide selection of US tech stocks
- AI-focused tools and educational resources
- Offers both MT4/MT5 and AvaTradeGO mobile app
Exness
- Tight spreads and high leverage options
- Easy deposit/withdrawal options
- Popular among short-term and algo traders
XTB
- Low commissions for stock CFD trading
- Advanced xStation 5 platform
- In-depth market research and webinars
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