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What Is One of the Best AI Stocks to Own for the Next Year?
Yahoo Finance· 2025-10-18 10:00
Core Insights - Alphabet is positioned as a leading AI stock for the upcoming year and beyond, with widespread daily usage of its products [2] - The company's primary business remains Google search, which is expected to continue being its most significant revenue source [3] Market Position - Alphabet dominates the search engine market with over 70% market share in both the Chrome browser and Android operating system, making it the default search engine for most users [4] - A revenue-sharing agreement with Apple further extends Alphabet's reach, excluding China where it does not operate [4] AI Integration - Alphabet is enhancing its search capabilities with its Gemini large language models, introducing multimodal AI features like Lens and Circle, which are increasing user queries [5] - The company is rolling out AI Mode, allowing seamless switching between traditional search and AI chatbots, and its Gemini app is gaining popularity with tools like "Nano Banana" [5] Competitive Advantage - Alphabet possesses a unique data advantage, with decades of behavioral data, extensive YouTube video libraries, and a large-scale ad network that supports diverse advertising campaigns [6] - This competitive edge contributes to a wide moat that protects Alphabet's market position in both search and AI [6] Growth Potential - The company is experiencing strong growth in cloud computing and is making strategic investments in emerging technologies [7] - Current stock valuations are considered attractive, indicating potential for future investment [7]