From Barchart:

1. Microsoft and Alphabet are both making significant investments in AI, with Microsoft emerging as a clear leader. While investors are skeptical about AI’s impact on Alphabet, both companies have seen growth in their cloud services. Microsoft’s introduction of AI chatbots and assistants has been widely successful, while Alphabet has introduced new AI advancements including MusicFX and ImageFX.

2. Microsoft’s Azure cloud service, powered by AI, saw a 30% growth in sales, while Google Cloud, also leveraging AI, grew by 26%. Microsoft’s AI chatbot Copilot has seen success in its products, leading to impressive revenue and user growth. Google, on the other hand, has introduced MusicFX and ImageFX, which differentiate themselves from the competition through unique features.

3. Despite some investor concerns about the impact of AI on Google Search, Alphabet’s dominance in search remains strong. AI has the potential to open new revenue sources for the company by creating new types of ads that can be served to users looking for answers from AI. While Microsoft is an exciting leader in AI, Alphabet’s valuation and lower expectations make it a more attractive investment choice.

4. Before investing in Alphabet, it’s important to consider that the Motley Fool Stock Advisor analyst team has identified what they believe to be the 10 best stocks for investors to buy now, and Alphabet wasn’t one of them. The Stock Advisor service has provided investors with a blueprint for success, including guidance on building a portfolio and regular updates from analysts, and could produce significant returns in the coming years.



Read more: Better Artificial Intelligence (AI) Buy: Microsoft vs. Alphabet