Alphabet, parent company of Google, YouTube, and Waymo, is leveraging artificial intelligence to drive revenue growth in key businesses like Google Search and Google Cloud. With a market capitalization of $3.4 trillion, Alphabet could potentially join the $4 trillion club next year, alongside Nvidia, Microsoft, and Apple.

AI advancements within Google Search, such as AI Overviews and AI Mode, have modernized the platform and improved user experiences. Google Search generated a record $56.5 billion in revenue in the third quarter of 2025, showcasing accelerated growth driven by AI innovations.

Google Cloud is experiencing rapid growth, with $15.1 billion in revenue during the third quarter, up 34% year over year. The platform’s use of AI, including Google’s tensor processing units, is attracting businesses seeking advanced data center infrastructure. Demand for Google Cloud services is outpacing Alphabet’s ability to expand its data centers.

Alphabet’s stock is undervalued compared to other big-tech peers, with a price-to-earnings ratio of 28. Analysts project earnings to reach $10.96 per share in 2026, potentially driving the stock price higher. The company’s clear path to the $4 trillion market cap mark makes it an appealing investment opportunity.

Considering the potential for growth and innovation, investing in Alphabet could yield significant returns. The Motley Fool Stock Advisor team has identified the top 10 stocks for investors, excluding Alphabet, that could offer substantial returns in the coming years. Don’t miss out on the latest investment opportunities with Stock Advisor.

Read more at Nasdaq: Will Alphabet Be the World’s Next $4 Trillion Stock?