Alphabet’s stock performance has investors questioning if it’s worth investing in. With a dominant 90% market share in search, it’s clear search is still the company’s main revenue driver, making up 55% of total revenue in 2025. AI integration has boosted growth, with search revenue growing 17% in Q4.

Despite being the third-largest cloud provider, Alphabet’s Google Cloud unit has seen substantial growth, with revenue climbing 48% last quarter to $17.7 billion. Operating income doubled from $2.1 billion to $5.3 billion, driven by AI demand. Custom AI chips give Alphabet a cost advantage over competitors relying on Nvidia GPUs.

Alphabet’s investment in AI infrastructure includes spending between $175-185 billion in capital expenditures this year, double what was spent in 2025. Custom AI chips called tensor processing units (TPUs) give the company a competitive edge, with Anthropic placing a $21 billion order for use in Google Cloud.

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Read more at Yahoo Finance: 4 Things Every Alphabet Investor Needs to Know