Meet the Unstoppable AI Stock That Continues to Crush the Market
Key Points
With a strong market position in all parts of the AI value chain, this tech enterprise might be the best way to invest behind this secular theme.
There's a standout segment whose revenue growth and profits are accelerating.
- 10 stocks we like better than Alphabet ›
The hottest trade continues to be putting capital behind the artificial intelligence (AI) revolution. Just when you think some of the most dominant businesses within this secular trend can't keep rewarding shareholders, they prove the doubters wrong. This is especially true with a familiar tech titan.
Meet this unstoppable AI stock that keeps crushing the market. It's up 17% in 2026 and has soared 112% over the past 12 months.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a winner in the AI race. It has a strong market position across the entire value chain, from its tensor processing units at the hardware and infrastructure layers to its popular user-facing applications such as Google Search and YouTube. And its Gemini App now has 900 million monthly active users.
However, Google Cloud has quickly become the star of the Alphabet show, thanks to robust demand for AI offerings. Chief Financial Officer Anat Ashkenazi said on the latest earnings call that the segment has $462 billion in customer backlogs, providing clear visibility for the management team.
Google Cloud's revenue growth has been accelerating, up 63% year over year to $20 billion in the first quarter. And the profits have improved drastically as greater scale has been achieved, with the segment posting an operating margin of 33%.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
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