From Nasdaq: 2025-05-01 05:14:00

The uncertainty surrounding U.S. trade and tariffs is causing concern, overshadowing the focus on artificial intelligence (AI). Despite market dips, investing in an AI stock like Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) is a smart move for long-term gains.

Alphabet reported strong Q1 2025 results, with revenue up 12% to $90.2 billion and operating margin at 34%. However, the company’s heavy reliance on digital advertising, which is cyclical, could be impacted by a softer macro environment.

As a leader in AI, Alphabet’s widespread product usage allows for constant testing and iteration. Google Cloud, with significant revenue and operating income growth, is set to benefit from the AI trend. The company’s aggressive push into AI, with plans for $75 billion in capital expenditures, reflects its commitment to innovation.

Despite Alphabet’s impressive growth and $1.9 trillion market cap, the stock remains attractively valued with a forward P/E ratio of 16.8. Investors should consider adding Alphabet to their portfolio as a no-brainer buy for long-term growth.

The Motley Fool Stock Advisor team has identified the 10 best stocks to buy now, excluding Alphabet. Previous stock picks like Netflix and Nvidia have delivered substantial returns. Don’t miss out on their latest recommendations for potential market-crushing returns.



Read more at Nasdaq: 1 No-Brainer Artificial Intelligence (AI) Stock to Buy Right Now