From Yahoo Finance: 2025-06-07 16:00:00

Alphabet, a dominant internet enterprise, has been investing in AI for decades, leading to substantial profits. With shares trading at a 22% discount to the S&P 500, it presents a compelling opportunity. The AI boom continues to grow, with companies, employees, and investors all looking to benefit from this trend.

Alphabet’s strategic focus on AI dates back to 2001, showcasing its commitment to the technology. Recent developments include AI integration in platforms like Search, Maps, and YouTube, enhancing user experience. Agent Mode, an upcoming tool, will streamline complex tasks. Waymo, Alphabet’s AV unit, heavily relies on AI for operations and advancement.

Google Cloud stands to benefit significantly from the AI surge as more companies seek to incorporate AI into their operations. During Q1 2025, 74% of Alphabet’s revenue came from digital advertising, with AI aiding in automated ad campaigns. Alphabet is well-positioned for the future, leveraging AI to enhance existing products and develop new tools.

Despite substantial investments in infrastructure, Alphabet remains financially robust, generating significant cash flow and earnings. The current valuation offers a 22% discount to the S&P 500, making it an attractive investment. While Alphabet is a top AI stock, investors should also consider other opportunities in the market.



Read more at Yahoo Finance: Got $3,000? 1 Artificial Intelligence (AI) Stock to Buy and Hold for the Long Term.