Alphabet is an AI winner, says MoffettNathanson's Michael Nathanson

Core Viewpoint - Alphabet is positioned as a leading company in AI, leveraging its infrastructure advantage to invest in AI more efficiently than competitors [2][6]. Investment in AI - Alphabet's ownership of its infrastructure, including TPUs, allows it to avoid high margins demanded by Nvidia for AI investments, enhancing its competitive edge [2]. - The company's investments in cloud and search are yielding positive results, indicating a strong trajectory for growth in AI applications [2]. Advertising Business - Alphabet's core business model revolves around selling advertising through search, which remains robust despite competition from AI-driven alternatives [3][4]. - The company possesses superior data insights from various platforms (Google Maps, YouTube, Gmail, search), enabling it to deliver better performance advertising and returns on sales compared to competitors [4]. Market Dynamics - While competition from AI platforms like ChatGPT may impact query share, Alphabet is expected to monetize queries more effectively than its rivals [6]. - The growth of Alphabet's AI product, Gemini, is notable, with an increase of 200 million users in a single quarter, reaching a total of 650 million [5]. Stock Performance - Alphabet's stock has shown resilience, with a recent increase of 3%, reflecting ongoing investor confidence in the company's performance and future prospects [7].