1 Absurdly Cheap Artificial Intelligence Stock to Buy Right Now

Core Viewpoint - Alphabet's recent earnings indicate that artificial intelligence (AI) is not negatively impacting its business, contrary to investor fears, and the stock appears undervalued with significant growth potential [1][2][11] Financial Performance - Alphabet's revenue from Google advertising for the quarter ending June 30 was $71.3 billion, reflecting a 10% increase year-over-year, while total revenue rose by 14% to $96.4 billion [6] AI Integration - Concerns that AI might reduce reliance on Google Search are unfounded, as Alphabet has successfully integrated AI into its search functions, providing users with AI-generated overviews and links [4] - Alphabet's chatbot, Gemini, benefits from extensive data from Google Search and YouTube, enhancing user experience through integration with services like Gmail [5] Breakup Potential - The possibility of a breakup due to antitrust issues has raised investor concerns, but some analysts suggest that such a breakup could enhance shareholder value, as individual business units may be worth more separately [8] - Alphabet's diverse business segments, including cloud computing and AI services, are trading at a modest 21 times earnings, below the S&P 500 average of 25, indicating potential undervaluation [9] Investment Outlook - Investing in Alphabet now could be advantageous, as resolution of breakup uncertainties may lead to stock price rallies, and owning separate business units could yield greater value than the current market cap of $2.3 trillion [10] - The stock is considered a strong buy at its current valuation, with significant growth prospects across its various assets and businesses [11]