Prediction: This Undervalued Artificial Intelligence (AI) Stock Will Be Worth $5 Trillion by 2030

Core Viewpoint - Alphabet is positioned to potentially become the first company to reach a $5 trillion market cap, currently valued at $2.8 trillion, due to its undervaluation and strong growth prospects in various segments [2][9]. Business Performance - Alphabet has made significant strides in the AI sector, now possessing one of the leading generative AI models, Gemini, which enhances its competitive position [4]. - Google Search, Alphabet's main revenue source, continues to thrive, with a 12% revenue growth in Q2, supported by the integration of AI features that enhance user experience [5]. - Google Cloud is one of Alphabet's fastest-growing segments, with Q2 revenue rising 32% year over year to $13.6 billion, and operating margins improving from 11% to 21% [8]. Market Position and Valuation - Alphabet's stock is currently undervalued compared to its peers, trading at 21.5 times forward earnings, which is lower than the high 20s to low 30s multiples of its competitors and the S&P 500's 24 times [10][12]. - If Alphabet can achieve a 15% earnings growth rate over the next five years and increase its valuation to 25 times forward earnings, the stock could potentially double, leading to a market cap exceeding $6 trillion [13].