Waymo Just Raised Another $16 Billion. Does That Make Alphabet the Ultimate AI Stock for 2026?

Core Insights - Waymo's recent capital raise of $16 billion highlights Alphabet's significant AI opportunities, with Waymo's valuation now at $126 billion, more than double its value from two years ago [1][2] Group 1: Waymo's Expansion and Impact - Waymo completed 15 million rides last year, a more than 3x increase from the previous year, showcasing the effectiveness of its self-driving technology [4] - The new investment will enable Waymo to expand its operations to 20 additional U.S. cities and internationally, transitioning from proving a concept to scaling a commercial reality [5] - The autonomous vehicle market is projected to be worth $2.2 trillion by 2030, presenting a substantial opportunity for Waymo and Alphabet [6] Group 2: Alphabet's Broader AI Strategy - Alphabet's chatbot, Google Gemini, has seen rapid growth, with 750 million monthly active users, up from 400 million nine months ago, indicating strong user engagement and ecosystem strength [9] - A collaboration with Apple will see Gemini used as the AI model for a new version of Siri, with Alphabet expected to receive billions over several years [10] - Alphabet's cloud revenue surged 48% in Q4, reaching $17.6 billion, contributing to over $400 billion in annual revenue for 2025, underscoring the financial impact of its AI initiatives [11]