The 1 Tech Stock I'd Buy With My Eyes Closed at Today's Prices

The run-up in artificial intelligence (AI) continues to push the stock market to new highs. The Nasdaq-100 is up an impressive 43% so far, solidly outdistancing the S&P 500's gain of nearly 10%.

One outlier, however, is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock. Despite being a member of the "Magnificent Seven" cohort and boasting not only a fast-growing cloud business but also running a powerful internet advertising operation, Alphabet stock is up only 16% so far this year (at the time of this writing).

There's a lot to unpack with Alphabet stock, and some of the company's investments are making some investors nervous. But if I had to buy one stock today, I'd tamp down my doubts, close my eyes, and buy Alphabet. Here's why.

Image source: Getty Images.

Why Alphabet is making investors nervous

The biggest opportunity for Alphabet is also its biggest challenge right now. Alphabet is one of several hyperscalers that have collectively committed $700 billion this year to build out their AI infrastructure. Alphabet plans to spend up to $190 billion in 2026, and it expects that figure to "significantly increase" in 2027.

The majority of that spending -- an estimated 60% -- is expected to go toward servers, including semiconductor chips that have a limited useful life before they must be replaced. Investors can't be blamed for wondering whether Alphabet will be able to generate enough profits in a short time to pay for that kind of investment.

That's why Alphabet stock fell in March, when planned 2026 capital expenditure (capex) figures first came out. And it's why the stock dropped again in June when Alphabet announced plans to raise $80 billion to build out AI infrastructure. The announcement came on the heels of Alphabet raising another $85 billion through debt issuances over the last year.

Why Alphabet's spending is justified

As mentioned, AI is both Alphabet's biggest challenge and opportunity. Alphabet saw $110 billion in revenue in the first quarter of 2026, up 22% from a year ago, and Google Cloud revenue increased 63% to $20 billion. Alphabet says that its Google Cloud backlog nearly doubled from the previous quarter to more than $460 billion -- and the company intends to realize about half of that as revenue in the next 24 months.

Management said in a news release:

AI is driving an expansionary moment for Alphabet. The company is experiencing strong demand for its AI solutions and services from enterprises and consumers at levels that are exceeding the company's available supply. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.

Google Cloud now has 14% of the global cloud infrastructure service market, behind only Amazon (28%) and Microsoft (21%). As cloud computing becomes more popular as the most efficient way to train and run AI-powered platforms, Google Cloud's position will continue to grow.

Why I would buy Alphabet now

Investors are understandably nervous about whether Alphabet's capex will pay off. But when you consider the opportunity in front of the company, its spending makes more sense. But using its sizable resources to build its AI infrastructure, Alphabet is positioning itself for the future while still maintaining its dominant position in internet advertising and search.

Alphabet stock is underperforming now, but I don't expect that to last, and I think it's a compelling long-term buy.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.