The tech sector, following a challenging 2022, has made a remarkable comeback in 2023, propelled by the ongoing artificial intelligence (AI) industry surge. ‘The Magnificent Seven,’ the world’s leading tech companies, have played a pivotal role in driving the S&P 500‘s resurgence.
Though not reaching the same heights, Google’s parent company, Alphabet (NASDAQ: GOOGL), has also thrived in the 2023 tech resurgence, achieving a fresh 52-week high on October 11, further solidifying the sector’s recovery.
The stock soared to $141.11, a new 52-week high but also the highest mark since April 2022, according to data retrieved from TradingView on October 12.
The company’s tech peer, Meta Platforms, also inked a fresh 52-week high on the same day.
Why are Google shares rising?
Alphabet’s latest stock upswing came amid an overall strong session for the tech sector and the broader US market.
US stocks saw a noteworthy resurgence this week despite a wave of unfavorable economic data and geopolitical developments, including a much hotter-than-expected jobs report in the US and an unexpected clash between Hamas and Israel during the weekend.
Even so, the US stock market rose significantly over the past few days, with the S&P 500 index and the Nasdaq composite climbing 2.76% and 3.26% since Friday, October 6.
Such bullish performance in the face of adverse external factors indicates noteworthy signs of resilience in US stocks. Former hedge manager and investor Puru Saxena believes this is a promising signal for the seasonal Q4 stock market rally.
Google stock price analysis
At the time of publication, shares of Google were sitting at $140.55, up 1.8% on the day. Over the past week, GOOGL gained around 4% and roughly 3.8% on the monthly chart. Year-to-date, the tech giant soared more than 57%, propelling its market cap to about $1.78 trillion.
At its 52-week high, GOOGL now faces an 18-month resistance at $143.65. Clearing this barrier would allow the stock to attack the next major resistance level at $151.5.
On the downside, Google’s shares are located above a support threshold at $139.14, indicating an area where buying pressure may increase should the stock face a downturn. Additionally, the stock is also trading above the 100-day simple moving average (SMA) at $128.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.