Core Insights - Alphabet is emerging as a leader in the AI sector, surpassing other major tech companies and gaining significant market share [1][2] - OpenAI's market share has decreased from 50% to 25% in the Enterprise LLM API space, while Anthropic has captured 32% and Google's Gemini holds 20% [2][3] - Alphabet's profitability and vast resources position it favorably against its start-up rivals, which are still years away from profitability [4][8] Financial Performance - For Q3 2025, Alphabet reported revenue of $102.3 billion, a 16% increase from Q3 2024, with net income rising 33% to $34.9 billion [7] - Diluted earnings per share (EPS) grew by 35% over Q3 2024, and free cash flow reached $24.4 billion, up 39% [7] - Alphabet maintains a gross margin of 59% and a net income margin of 32% [8] Strategic Investments - Alphabet has made significant investments in energy infrastructure, including a 25-year power purchase agreement with NextEra Energy and the acquisition of Intersect for $4.75 billion [9] - The company has the financial capability to expand its data center operations without relying on external funding [8][9]
My Favorite Artificial Intelligence Stock to Buy Right Now