Alphabet’s flywheel advantage lies in its custom AI chips and models, positioning it as a top AI stock for years to come. The integration of Gemini into Google search has boosted performance and user experience, setting it apart from competitors. With TPUs and cost advantages, Alphabet is poised for market-beating returns.

Alphabet’s custom AI chips, Tensor Processing Units (TPUs), give it a significant edge over competitors relying on GPUs. The software-hardware integration of TPUs makes them efficient and cost-effective, driving growth in AI capabilities and market share. This structural advantage creates a virtuous cycle for Alphabet, enhancing its cloud computing unit’s competitive position and profitability.

Alphabet’s unique combination of world-class AI chips and models positions it as a leader in the AI space. Amazon and Microsoft are playing catch-up with their custom chips, while OpenAI lacks the distribution and ad network of Alphabet. The flywheel effect Alphabet has created is just beginning to show results, promising market-beating returns in the future.

Read more at Nasdaq: Prediction: This AI Stock Could Deliver Market-Beating Gains Through 2030