Alphabet, a trillion-dollar AI stock, has a low P/E ratio and strong financials.

From Nasdaq: 2025-04-11 06:15:00

Investors should keep an eye on AI amid market volatility. A top AI stock with a P/E ratio of 19 is trading at its lowest level in over two years. Consider investing in this trillion-dollar business for AI exposure, but be cautious of potential risks.

Alphabet, the parent company of Google, faces risks from generative AI models affecting ad revenue. However, the company has launched AI Overviews and is optimistic about AI innovation and monetization. With Google Search generating $198 billion in sales in 2024, Alphabet is well positioned to benefit from the AI boom.

Alphabet’s financial strength allows it to aggressively pursue the AI opportunity, with plans to invest $75 billion in technological capabilities in 2025. The company’s wide economic moat, supported by network effects in Google Search and YouTube, enhances its competitive position. With a P/E ratio of 19, Alphabet stock seems attractive for investors.

Consider investing in Alphabet, as identified by The Motley Fool Stock Advisor team. While Alphabet isn’t on their top 10 list, historical returns from their recommendations showcase significant growth potential. Don’t miss out on the latest top stock picks to potentially achieve market-crushing returns.



Read more at Nasdaq: This Trillion-Dollar AI Stock Is Trading at Its Cheapest P/E Ratio in Over 2 Years: Time to Buy?