CoreWeave and Alphabet Compete in AI Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy GOOG?
Source: Fool
- Surging Market Demand: Since its IPO last year, CoreWeave has experienced explosive growth due to its pivotal role in the AI market, particularly in renting out capacity for AI workloads, addressing the urgent demand for computational power and driving its stock performance.
- Alphabet's Cloud Revenue Growth: Alphabet's cloud revenue soared by 48% to $17 billion in the latest quarter, fueled by strong demand for AI infrastructure and solutions, indicating its favorable positioning to capitalize on the AI revolution and generate substantial revenue.
- Advertising Revenue Boost: Alphabet's Gemini large language model not only enhances search results but also streamlines the advertising process, potentially encouraging advertisers to increase their spending on Google ads, thereby further bolstering the company's primary revenue stream.
- Long-Term Competitive Advantage: While CoreWeave's stock has surged approximately 100% over the past year and Alphabet has risen by 85%, Alphabet's extensive cloud business and robust search engine suggest a stronger revenue growth potential, positioning it to potentially outperform CoreWeave in the long run.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
Current: 294.900
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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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, driven by its custom chips that enhance cost performance for AI applications, attracting numerous developers.
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- Valuation Timing: Ackman entered these three companies at P/E ratios of 16, 25, and 20 during periods of weak market sentiment, indicating a strategy focused on finding value amidst uncertainty, potentially laying the groundwork for future earnings growth.
- Capital Expenditure Plans: In 2026, Alphabet plans to invest $175 billion to $185 billion, while Amazon and Meta are set to spend $200 billion and $115 billion to $135 billion on AI-related investments, demonstrating their commitment to technological innovation.
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