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This Artificial Intelligence (AI) Stock Looks Dirt Cheap Right Now
The Motley Fool· 2025-08-25 07:45
Core Viewpoint - Alphabet is undervalued as an AI megacap stock, trading at a forward P/E ratio of less than 19 times analysts' 2026 earnings estimates, despite its strong positions in search, mobile, video, cloud computing, and robotaxi businesses [2][16]. Search and AI - Alphabet's stock is perceived as cheap due to investor concerns about AI disrupting its Google Search business, but search revenue growth accelerated by 12% year over year to $54.2 billion in Q2 [3][17]. - Over 2 billion users engage with AI Overviews in Google Search, and the newly launched AI Mode is gaining popularity, with 82% of users finding it more useful than traditional search [5][6]. Distribution Advantage - Alphabet benefits from not needing to change consumer habits, as billions already use Google daily, enhancing user experience through AI integration [6]. - Google controls two-thirds of the global browser market with Chrome and powers over 70% of smartphones with Android, making it a primary entry point to the internet for billions [7]. Advertising Network - Alphabet has built a powerful advertising network over decades, serving a wide range of clients from global brands to local businesses, creating a significant competitive moat [8]. Cloud Computing - Google Cloud is a major growth driver, with revenue surging 32% in Q2 to $13.6 billion and operating income more than doubling to $2.8 billion [10]. - Adoption of Google's AI models and custom tensor processing units (TPUs) is increasing, providing a cost advantage for Google Cloud [11][12]. - Demand for cloud services is so high that capacity constraints may persist into 2026, prompting Alphabet to invest in new data centers to enhance profitability [13]. Emerging Businesses - Alphabet's Waymo is leading in the autonomous driving sector, currently available in multiple cities and testing in 10 new markets [14]. - Advancements in quantum computing, particularly with the Willow chip, could provide significant growth opportunities in the future [15]. Investment Opportunity - Despite its strong market position and emerging business potential, Alphabet trades at one of the lowest valuations among major tech AI leaders, making it an attractive investment for exposure to AI and emerging technologies [16][17].
LivePerson Announces Expanded Partnership with Google Cloud to Transform Enterprise AI Outcomes and Customer Experience
Prnewswire· 2025-08-06 12:30
The core of this collaboration, driven by the integration of market-leading AI capabilities, lies in empowering businesses to move from reactive support to anticipatory and personalized customer interactions across all digital channels. Key industry-shaping components include: By partnering with Google Cloud, LivePerson is uniquely positioned to redefine enterprise customer experiences, enhancing its platform with unparalleled AI sophistication and solidifying its leadership in conversational AI and digital ...
5 No-Brainer Artificial intelligence (AI) Stocks to Buy Right Now
The Motley Fool· 2025-06-13 08:35
Core Viewpoint - The article highlights the transformative impact of artificial intelligence (AI) and identifies five leading AI stocks that present investment opportunities in the current market landscape [1]. Company Summaries 1. Palantir Technologies - Palantir Technologies is emerging as a significant growth player in AI by enabling organizations to implement AI solutions effectively [3]. - The company's AI platform (AIP) structures data into an "ontology," allowing customers to apply AI for various applications, including supply chain optimization and hospital monitoring [4]. - Palantir's growth is currently driven by the U.S. public sector, with new AI agents in AIP that enhance its capabilities, positioning the company as a long-term AI leader despite potential risks from government budget cuts [5][6]. 2. Nvidia - Nvidia is a key player in the AI infrastructure market, with its GPUs serving as the backbone for AI data centers due to their powerful processing capabilities [7]. - The company's CUDA software platform enhances the performance of its GPUs, allowing Nvidia to capture over 90% of the GPU market share in Q1 [8][9]. - Nvidia's revenue from the automotive sector is projected to reach $5 billion this year, although a slowdown in AI spending poses a risk [10]. 3. Advanced Micro Devices (AMD) - AMD is establishing a niche in AI infrastructure, particularly in inference, despite trailing Nvidia in the GPU market [11]. - The company is gaining traction in the AI inference market, which is expected to grow larger than training, and is also a leader in data center CPUs [12][13]. - AMD's potential for growth hinges on capturing market share in inference, although it faces the challenge of being overshadowed by Nvidia [14]. 4. Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the leading semiconductor contract manufacturer, benefiting from the AI infrastructure boom by producing advanced chips like GPUs [15]. - The company excels in advanced manufacturing processes, giving it strong pricing power and making it a critical player in the semiconductor supply chain [16][17]. - TSMC is expanding capacity to meet high demand for AI chips, with manageable risks associated with potential slowdowns in AI infrastructure spending [18]. 5. Alphabet - Alphabet is adapting to the evolving AI landscape, with its search revenue growing by 10% in Q1 despite competitive pressures [20][21]. - The company is leveraging its adtech experience and distribution advantages to monetize AI-powered search tools and expand its cloud computing business through Google Cloud [21][22]. - Alphabet's investments in autonomous driving via Waymo present additional long-term growth opportunities, although regulatory risks and competition remain [23].
4 No-Brainer "Magnificent Seven" Stocks to Buy Right Now
The Motley Fool· 2025-04-02 08:25
The so-called "Magnificent Seven" stocks have helped power the market higher for the past few years. However, just like other stocks, these names have pulled back in recent weeks over macroeconomic concerns affecting earnings, some angst about the potential for diminishing returns related to artificial intelligence (AI), and uncertainty over tariff actions by the Trump administration. But pullbacks tend to be short-term setbacks for great companies that eventually find ways to recover. Let's look at the bes ...