Alphabet’s stock price surged 65% last year, leading all Magnificent Seven companies, with a total gain of 280% since early 2023. The stock’s valuation, however, stands at 30 times this year’s projected per-share profits.

Alphabet’s recent fourth-quarter earnings report showed a revenue of $113.8 billion, generating a per-share profit of $2.82, exceeding analyst expectations. The company plans to double its capital expenditures, with most of the investment going towards AI infrastructure.

Alphabet’s cloud business, though not its main revenue source, is growing rapidly, contributing 15% to its top and bottom lines. The cloud arm’s operating income more than doubled last quarter, indicating significant growth potential for the company in AI-related ventures.

Read more at Yahoo Finance: 1 Reason Alphabet Stock Could Deliver Massive Returns by 2027