Alphabet’s stock price has more than doubled since hitting a 52-week low in April, reaching $278 per share. The company is well-positioned in the cloud market thanks to its top-notch artificial intelligence (AI) infrastructure. Strong demand for Google Cloud contributed to a 34% year-over-year increase in cloud revenue in the third quarter of 2025.

Alphabet has successfully developed an AI infrastructure, including the Gemini model, which processes 7 billion tokens per minute. The Gemini AI model has ranked among the top performers in leading benchmarks, driving strong adoption with 650 million monthly users. Despite the stock’s recent rally, Alphabet remains attractive, trading at just 25 times next year’s consensus earnings estimate.

Investors are optimistic about Alphabet’s future potential, as the company’s cloud business continues to grow. With a $10.7 billion operating profit from Google Cloud on a trailing-12-month basis, Alphabet is showing significant improvement in profitability. Despite not being among the 10 best stocks identified by The Motley Fool’s Stock Advisor team, Alphabet’s strong performance in AI and cloud services makes it a compelling investment option.

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