Alphabet achieved over $100 billion in revenue in Q3 2025 with $24.5 billion in free cash flow, allowing for substantial AI investments. Its full-stack AI strategy is a key competitive advantage for market outperformance, with a market cap of $4 trillion. Shares have risen 75% in the past year.

Alphabet’s revenue sources include Google Search, YouTube ads, subscriptions, platforms, devices, and Google Cloud, all showing double-digit growth. Q3 2025 saw a 16% year-over-year revenue increase to $102.3 billion, generating $24.5 billion in free cash flow with $98.5 billion in cash, cash equivalents, and marketable securities.

Alphabet’s AI approach involves designing chips, providing infrastructure, development platforms, and consumer applications integrated into products like Search, Gmail, and YouTube. This strategy generates additional revenue streams and reduces dependence on external AI companies, making it a compelling long-term investment at 30 times forward earnings.

The Motley Fool Stock Advisor team identified the 10 best stocks, excluding Alphabet, for potential high returns. Historical examples like Netflix in 2004 and Nvidia in 2005 show substantial growth potential from similar recommendations.

Read more at Yahoo Finance: What Is One of the Best Tech Stocks to Own for the Next 10 Years?