Prediction: This Artificial Intelligence (AI) Stock Will Be Worth $5 Trillion in 5 Years

Core Viewpoint - Alphabet has the potential to grow into a $5 trillion company within five years, driven by its cheap valuation and strong growth prospects [2][12]. Group 1: Company Overview - Alphabet is the parent company of Google, YouTube, Waymo, and the Android operating system [2]. - The market currently holds a bearish outlook on Alphabet's primary revenue driver, the Google search engine, which contributes to its cheap valuation [6]. Group 2: Market Position and Growth Potential - Despite challenges from generative AI, the majority of users still rely on Google search, indicating that predictions of its extinction may be overstated [3]. - Google's integration of generative AI into its search results is expected to satisfy most users, while also allowing for monetization at rates comparable to traditional searches [5]. Group 3: Financial Metrics - Alphabet's stock is currently valued at 20.3 times forward earnings, which is lower than the broader market's 23.7 times [8]. - The company has consistently delivered earnings-per-share (EPS) growth of 20% or more over the past few years, justifying a potential premium valuation [8]. Group 4: Future Valuation Scenarios - If Alphabet's valuation increases to 25 times forward earnings and achieves 15% EPS growth over the next five years, its stock could reach over $476 per share, resulting in a market cap of approximately $5.75 trillion [11]. - This represents a significant increase from its current market cap of $2.4 trillion, positioning Alphabet as a potential market outperformer [11][12].