No-Brainer Buy Alert: 1 Artificial Intelligence (AI) Stock With Massive Long-Term Potential

Core Insights - The AI industry is projected to generate $2 trillion in revenue by 2035, presenting attractive investment opportunities in solid companies like Alphabet due to recent stock price declines [2][4]. Company Overview - Alphabet has experienced a nearly 20% decline in stock value in 2025, attributed to market sell-offs and concerns about its position in the AI race [4]. - Despite the decline, Alphabet's revenue growth rate improved to 15% in constant currency in 2024, up from 10% in 2023, with adjusted earnings growth increasing by 11 percentage points [5]. AI Integration and Product Development - Alphabet is integrating AI across various applications, including its search engine, cloud infrastructure, and workplace collaboration tools [5]. - The Google Gemini AI assistant powers seven products with over 2 billion users, and the Circle to Search feature is gaining traction on 200 million Android devices [6][7]. Market Position and User Growth - Google maintains a 90% market share in the search engine market, with plans to increase Gemini users to 500 million by year-end through partnerships, including one with Samsung [7][8]. Cloud Business Performance - Google Cloud revenue increased by 30% in Q4 2024, up from 25% the previous year, driven by demand for AI-powered services [9]. - The number of first-time commitments for Google Cloud more than doubled in 2024, with several strategic deals exceeding $1 billion [10]. Future Growth Potential - The demand for AI services in the cloud is expected to grow at an annual rate of 30% through 2032, positioning Google Cloud for sustained growth [11]. - Alphabet plans to invest $75 billion in capital expenditures in 2025, a 43% increase from the previous year, primarily for servers and data centers [12]. Valuation and Earnings Outlook - Alphabet's trailing earnings multiple has decreased to 19, with a forward earnings multiple of 17, indicating a favorable valuation for investors [13]. - The company is expected to achieve 11% earnings growth despite increased capital expenditures, with potential for better-than-expected performance if it captures a larger share of advertising revenue or successfully monetizes Gemini [15].