Core Viewpoint - Alphabet is positioned as the best investment choice among the "Magnificent Seven" stocks, with significant potential upside in various sectors including search, AI infrastructure, autonomous driving, and quantum computing [1]. Group 1: Search and Advertising - Concerns about AI chatbots replacing traditional search are prevalent, but AI queries are more expensive to run compared to traditional searches, which supports Alphabet's ad-supported search model [3]. - Alphabet's dominance in search is reinforced by its ownership of distribution channels, including the Android operating system and Chrome browser, as well as revenue-sharing agreements with Apple and other browsers [3]. - The company has built one of the largest digital advertising platforms, with user-friendly self-serve ad tools that cater to businesses of all sizes [4]. Group 2: Monetization Opportunities - Currently, only about 20% of Alphabet's searches include ads, indicating substantial room for growth in monetization [5]. - New AI-powered features like "Shop by AI" and virtual try-ons are being introduced, enhancing user experience and creating additional monetization avenues [5]. - The integration of AI and traditional search is likely to be complementary, with many users expected to continue using free, ad-based search options [6]. Group 3: Cloud Computing - Google Cloud is experiencing significant growth, with a 28% increase in revenue and a 142% surge in operating income last quarter [7]. - The Vertex AI platform is attracting customers for building and managing AI models, while Alphabet's Gemini foundational model provides a competitive edge [8]. - Custom-built Tensor Processing Units (TPUs) are designed to optimize AI workloads, offering both power and energy efficiency compared to traditional GPUs [9]. Group 4: Future Technologies - Alphabet is entering the AI chip market with the launch of Ironwood, a TPU designed for inference, which is expected to grow significantly [11]. - Waymo, Alphabet's autonomous driving subsidiary, is expanding rapidly and has shown strong usage metrics, indicating a promising future despite current unprofitability [12]. - The company is also making strides in quantum computing with its Willow chip, which has demonstrated a significant reduction in error rates [13]. Group 5: Valuation - Alphabet is currently trading at a forward price-to-earnings (P/E) ratio of just over 18 times 2025 analyst estimates, suggesting it is undervalued compared to its market position [14]. - The company holds leading positions across multiple sectors, making it an attractive option for long-term investors seeking a technology leader at a reasonable price [15].

The year is halfway over, and artificial intelligence (AI) investing hasn't gone anywhere. Companies are sticking to their plan to spend a record amount on data centers, which are primarily used to power the ever-growing AI workloads.There are several beneficiaries of this trend, but three of my favorites are Nvidia (NVDA 2.62%), Broadcom (AVGO 1.98%), and Taiwan Semiconductor Manufacturing (TSM 4.05%).These stocks aren't new; they've been top AI stocks to buy for several years now. However, there's still p ...

Core Viewpoint - Technology stocks, particularly those involved in artificial intelligence (AI), are expected to continue leading market growth, with several key companies positioned to benefit from this trend. Group 1: Nvidia - Nvidia is a dominant player in AI infrastructure, with its GPUs driving significant growth in data centers, achieving a 69% year-over-year revenue increase to $44.1 billion, and a 73% rise in data center sales to $39.1 billion [2][4] - The company holds a 92% market share in the GPU space, supported by its CUDA software platform, which has established a strong competitive advantage [4] - As AI infrastructure spending increases, Nvidia is well-positioned to capitalize on this trend [4] Group 2: Advanced Micro Devices (AMD) - AMD is also benefiting from the AI infrastructure expansion, with a 36% year-over-year revenue increase and a 57% growth in its data center business [5][6] - While it trails Nvidia in GPUs, AMD has established itself as a leader in CPUs for data centers and is focusing on AI inference, which is expected to grow significantly [6][7] - Small market share gains in inference could lead to substantial growth for AMD [7] Group 3: Meta Platforms - Meta Platforms is emerging as a leader in digital marketing AI, utilizing its proprietary AI model, Llama, to enhance user engagement and improve ad effectiveness, resulting in a 5% increase in ad impressions and a 10% rise in ad prices [8][9] - The company is expanding its advertising capabilities on platforms like WhatsApp and Threads, which have large user bases, positioning itself for future growth [9] Group 4: Alphabet - Alphabet remains well-positioned despite concerns about AI disrupting its search business, benefiting from its extensive distribution network and a strong advertising platform [10][11] - Google Cloud's revenue grew by 28%, driven by customers building AI models, and the company is leveraging its custom AI chips, TPUs, for internal improvements and external partnerships [12] - The Waymo robotaxi business shows strong demand and expansion potential, contributing to Alphabet's innovative technology portfolio [13] Group 5: Pinterest - Pinterest has focused on AI to enhance its platform's shoppability, leading to increased user engagement and average revenue per user [14] - A partnership with Google has improved monetization of its international user base, and the new ad tool, Performance+, aims to drive further growth through AI and automation [15]

Group 1: AI Stocks Overview - Successful long-term investing involves consistent, smaller steps, akin to building a house brick by brick [1] - Investing in growth stocks, particularly in high-growth industries like AI and e-commerce, can be a powerful wealth-building strategy [2] Group 2: Alphabet Inc. (GOOGL) - Alphabet is gaining momentum in AI, with its Gemini model becoming popular and Waymo advancing in autonomous vehicles [5][6] - The company is positioning itself as a well-rounded AI player, with a current P/E ratio of 20, indicating a compelling valuation [7] Group 3: Amazon.com Inc. (AMZN) - Amazon is benefiting from AI, which is enhancing cloud demand and potentially transforming its e-commerce business by automating supply chains [8][9] - The company is testing robotics for delivery, which could significantly reduce workforce needs and improve profit margins, despite a P/E ratio of 36 [10][11] Group 4: C3.ai (AI) - C3.ai is highlighted as a promising AI software stock, with potential to improve business performance across various industries [12] - Despite not being profitable, C3.ai's valuation at 8 times sales is more attractive compared to Palantir's high valuation of 108 times sales, making it a potentially superior investment [13][14]

Core Viewpoint - Artificial intelligence (AI) is creating profitable opportunities in the cloud computing market, which was valued at $348 billion and grew 23% year over year in Q1 [1] Group 1: Oracle - Oracle's stock has tripled over the last three years and is approaching an all-time high following better-than-expected fiscal 2025 revenue [3][8] - In fiscal Q4, Oracle's total revenue grew 11% year over year, with cloud infrastructure revenue increasing by 52% year over year, driven by AI demand [5][6] - Management projects total cloud revenue growth to accelerate from 24% in fiscal 2025 to over 40% in fiscal 2026, potentially surpassing AWS's growth [7] - Oracle's forward price-to-earnings (P/E) multiple is 30, lower than Amazon's 34 and Microsoft's 35, indicating the stock may be undervalued [8] Group 2: Alphabet (Google) - OpenAI selected Google Cloud for its computing needs, validating Alphabet's AI investments and potential market share growth [10] - Google Cloud's revenue grew 28% year over year last quarter, positioning it third in market share behind AWS and Microsoft Azure [11] - Google Cloud is now generating over 7% of Alphabet's operating profit, up from 3.5% last year, with the potential to contribute around 25% in the next three years [13] - Alphabet's forward P/E is 18, reflecting its dependence on the advertising market, but its AI investments position it as a compelling buy among leading cloud stocks [14]

OpenAI and Google reportedly finalized a deal in which OpenAI will tap Google’s cloud service for additional computing capacity to train and run its artificial intelligence (AI) models.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no addition ...