The S&P 500 continues to reach new highs, making it challenging to find affordable large-cap stocks, especially in technology and AI. Stocks like Nvidia and Microsoft have high P/E ratios, posing risks for investors. However, Alphabet stands out as a viable AI stock to consider investing in, offering growth potential and value.

Alphabet, Google’s parent company, is well-positioned to benefit from AI advancements through its various subsidiaries and vast user data. Revenue from Google Services is growing at a 10% annual rate, with Google Cloud showing remarkable revenue growth and potential for further expansion. Waymo, Alphabet’s self-driving startup, adds to its growth matrix.

Despite significant upfront investments in AI infrastructure, Alphabet’s profit margins are expected to rise steadily. With a 40% operating margin in the long term, Alphabet could become the most profitable company globally. The company’s commitment to buybacks and dividends, along with its relatively cheap P/E ratio, make it an attractive stock option.

Where to invest $1,000 right now? The analysts have revealed the top 10 stocks to buy, including Alphabet, which shows promising growth potential. With Stock Advisor’s track record of market-beating returns, it’s worth considering their recommendations for investment opportunities. Consider joining Stock Advisor to access the latest insights on stock investments.

Read more at Nasdaq: The Best Artificial Intelligence (AI) Stock to Buy With the Market At All-Time Highs