Alphabet’s revenue growth accelerated in Q4, with Google Cloud leading the way and revenue hitting $17.7 billion. The company plans to invest aggressively in AI by 2026, setting a capex budget of $175-185 billion. Despite this, Alphabet’s stock slid, but it still looks attractive with a forward P/E of 29.

Alphabet’s Q4 results showed a 48% revenue growth for Google Cloud, with segment operating income soaring to $5.3 billion. The company aims to be Apple’s preferred cloud provider and help create new AI models. Google Search revenue jumped 17%, while YouTube and other segments contributed to a 17% rise in subscription revenue.

Alphabet’s total revenue for Q4 rose by 18% to $113.8 billion, with earnings per share up 31% to $2.82. The company’s strong performance and focus on AI make it a top stock pick. With a forward P/E of 29 and a PEG ratio of 0.7, Alphabet remains a buy for investors looking to capitalize on its AI advantage.

Investors considering Alphabet stock should note that it wasn’t among the 10 best picks identified by the Motley Fool Stock Advisor team. However, Alphabet’s strong performance in AI and revenue growth in key segments make it a compelling investment choice for those seeking exposure to a top AI player with solid financials.

Read more at Nasdaq: Prediction: Alphabet’s Stock Will Be a Winner in 2026