Why Alphabet (Google) Is Still A Great AI Stock For 2024 and Beyond

Group 1 - Alphabet's stock has reached all-time highs in 2024, driven by strong earnings and a favorable market for AI computing infrastructure [1] - The company reported a 15% year-over-year increase in quarterly revenue to $80.5 billion for Q1 2024, with operating income profit margin rising from 25% to 32% [2] - Operating profit increased by 47% to $25.5 billion, and earnings per share surged by 62% [2] Group 2 - Alphabet announced $15.7 billion in share buybacks for Q1 2024 and introduced a quarterly dividend of $0.20 per share, yielding nearly 0.5% annually [2] - Google Cloud generated $9.57 billion in quarterly revenue, up 28% year-over-year, with an operating margin of 9.4% [2] Group 3 - Capital expenditures nearly doubled to $12 billion in Q1, primarily for AI systems and upgrades to data centers [3] - Alphabet holds $108 billion in cash and short-term investments, with only $13.2 billion in debt [3] Group 4 - Alphabet's strong computing power and cash reserves position it well in the competitive AI market, allowing for continued investment and growth [4][6] - The stock trades at a forward price-to-earnings ratio of 22, indicating potential for long-term investment despite not being cheap [7]