From Nasdaq: 2025-06-01 03:25:00

Investors have seen significant gains in AI stocks like Nvidia and Palantir, but not all AI stocks are commanding premium valuations. Alphabet, parent company of Google, is now considered a value stock with a P/E ratio of about 19, making it an intriguing opportunity for investors looking for AI value plays.

Alphabet has faced challenges from OpenAI’s ChatGPT, impacting Google Search and advertising revenue. With ChatGPT directing users to information rather than websites, Google Search’s market share has dropped below 90%, potentially affecting Alphabet’s revenue stream. Despite these challenges, Alphabet is diversifying its revenue sources and investing heavily in AI technology.

Alphabet’s low P/E ratio, diverse revenue streams, and investments in technology make it a compelling value play. With Google Cloud, Waymo, and other businesses under its umbrella, Alphabet has the potential to drive significant revenue growth. Investors should consider Alphabet’s long-term potential and its ability to generate cash for future growth opportunities.



Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock Could Be the Next Great Value Play