Why a top tech investor says Alphabet is the best Mag 7 stock to own for the next year

Core Viewpoint - Alphabet is considered a top stock pick among tech giants due to its advancements in AI technology and market positioning [1][7]. Group 1: AI Developments - Google's recent progress in AI, particularly with its Tensor Processing Units potentially powering Meta Platforms' data centers by 2027, has positively impacted Alphabet's stock [2]. - The company has demonstrated its ability to compete in the generative AI market, countering previous concerns about its competitiveness [2][3]. - The chatbot market presents a significant opportunity for Google, with only about 20% of its user base frequently engaging with its Gemini AI tool [4]. Group 2: Market Position and Valuation - Alphabet's stock is currently trading at 28 times forward 12-month earnings, which is in line with other major tech stocks, but its new competitive position in AI and chip markets could justify a higher valuation [5]. - Google's distribution advantage is highlighted, with 2.5 billion daily users of Google search compared to an estimated 500 million daily ChatGPT users, reinforcing its market dominance [6].