Alphabet: The Top Long-Term Investment in AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 24 2026
0mins
Source: Yahoo Finance
- AI Advantage: Alphabet's AI Overviews boast over 2 billion monthly users, contributing to a 19% year-over-year increase in Google Search revenue to $60.4 billion, demonstrating the strong market adaptability and profitability of AI technology.
- Cloud Computing Growth: Google Cloud achieved $20 billion in sales in Q1 2026, a 63% year-over-year increase, with its backlog nearly doubling to over $460 billion, indicating robust demand and growth potential in the cloud services market.
- Autonomous Driving Breakthrough: Alphabet's Waymo surpassed 500,000 paid robotaxi rides per week in Q1, and after a $16 billion funding round, it is now valued at $126 billion, showcasing its market leadership in the autonomous driving sector.
- Capital Expenditure Outlook: Although Alphabet raised its capital expenditure guidance for 2026 to between $180 billion and $190 billion, the skyrocketing demand for computing power suggests that AI data centers could become a new revenue source, mitigating investment risks.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 386.120
Low
255.00
Averages
336.08
High
400.00
Current: 386.120
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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