Alphabet's strong AI capabilities and growing cloud business make it a valuable long-term investment.

From Nasdaq: 2025-07-03 06:30:00

Artificial intelligence (AI) has become increasingly popular, especially with tools like OpenAI’s ChatGPT. Companies are either developing AI technology, building tools, or using existing ones. Google’s parent company, Alphabet, has been a key player in AI development, with major breakthroughs in transformer architecture, large language models, and protein structure prediction.

Alphabet continues to thrive despite concerns that AI tools could impact Google Search revenue. In Q1, Alphabet generated $90.2 billion in revenue, with Google Cloud leading the growth at 28%. The stock is trading at 18.5 times its forward earnings, making it undervalued compared to other top companies. With strong AI capabilities and a growing cloud business, Alphabet presents a valuable investment opportunity.

Investing in Alphabet for the long term could yield significant returns. While it may not double your money quickly, Alphabet’s current stock price offers a bargain for patient investors. Consider dollar-cost averaging to build a position. The Motley Fool’s Stock Advisor team has identified 10 top stocks for growth, potentially outperforming the market. Join Stock Advisor for access to their latest recommendations and market insights.



Read more at Nasdaq: This Stock Is Shaping the Future of Artificial Intelligence (AI), but Is It a Buy Right Now?