Why Is Google Stock Up Today? AI Hiring Fuels Optimism Despite Technical Resistance

Alphabet stock closed last week with a third straight daily gain, but renewed investor optimism about artificial intelligence wasn’t enough to push it past a key technical barrier.

While the addition of AI specialists to Google DeepMind has strengthened bullish sentiment, it remains to be seen if the stock can sustain the recent momentum. Shares of Alphabet (GOOGL) have been on an uptrend since July 8, rising from $174 to $182 as of the time of this publication.

AI Hiring Sparks Optimism, But Momentum Faces Technical Hurdle

The market reacted favorably to news that Google DeepMind had onboarded Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several senior R&D figures. The hires are seen as a strategic move to strengthen Google’s position in the AI arms race, especially as Big Tech battles for dominance in generative AI infrastructure and innovation.

Despite this, Monday’s premarket session saw GOOGL shares pull back by 2% to around $176, according to TradingView data. The dip likely reflects short-term profit-taking after last week’s strong finish, rather than any fundamental shift in investor sentiment.

Technical indicators, particularly the Relative Strength Index (RSI) reading of 64, suggest there is still room for the stock to move higher without entering overbought territory.

From a charting perspective, Alphabet’s price remains confined to a range between $175 and $181. Breaking decisively above the upper boundary could open the door for a move toward the next resistance at $186. Until that breakout occurs, the stock is effectively range-bound, though the broader uptrend over the past three months shows a bullish outlook.

Still, potential headwinds linger. Alphabet continues to face regulatory scrutiny related to antitrust investigations, and some investors remain cautious about the pace of commercial AI integration, especially as rivals push forward with monetizable products.

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Broader Market Holds Steady as Tariff Threats Loom

Elsewhere in the market, major indexes were mixed. The Dow Jones Industrial Average and S&P 500 each added 0.2%, while the Nasdaq rose 0.4%. Investors appeared to shrug off renewed trade tensions after President Trump threatened 30% tariffs on imports from Mexico and the European Union, effective August 1, unless new trade agreements are reached.

Tech stocks led the modest advance, with Meta and Broadcom each gaining around 1%, while chip stocks lagged. Micron fell 4%, and Qualcomm dropped 2% as semiconductor sentiment weakened. Crypto-related stocks also rallied, driven by Bitcoin’s continued surge above $123,000.

Can Alphabet Break Through?

Investors will be watching Alphabet closely this week for signs of a decisive breakout. With RSI momentum on its side and growing confidence in the firm’s AI capabilities, the stock could be positioned to overcome its current ceiling.

However, resistance at $181 has proven difficult to breach. Whether the recent hires at DeepMind can translate into lasting market confidence may determine if Alphabet’s fourth day of gains turns into something more durable.