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Alphabet has a lot of pipeline in search that should expand AI.
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The company is seeing strong growth in cloud computing, and has attractive bets on other emerging technologies.
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The stock is highly valued at current prices.
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10 shares we like better than the alphabet>
If you’re looking for one of the best artificial intelligence (AI) companies to own for the next year and beyond, you don’t need to look far. In fact, you probably use one or more of this company’s products every day. That’s one of the big reasons why Alphabetical order (Nasdaq: Google) (Nasdaq: Google) Is the top AI stock to be in the next year despite the long haul.
Alphabet today is about more than Google, but that is still its biggest and most important business, and it will remain so for the future. Whether the queries come from traditional search or AI aitbots, characters established a wide moat in this field.
Alphabet’s Perminance begins with distribution. It is the owner of the world’s most used browser with the Chrome operating system and the top smartphone on Android, both of which had a market share of more than 70%. That makes Google the default search engine for most people. On top of that, it has revenue sharing an apple To be the default search engine on its devices, which helps it reach most of the world, except for China, where its search business does not work.
At the same time, Alphabet is adding its search solutions and large, highly rated models to Gemini to help drive growth. It has introduced multimodal AI search features such as lens and circle search on Smartphones, leading to an increase in queries. At that time, it included an overview of AI in its search results, making search more useful with AI. And now it’s rolling out AI mode, allowing users to easily switch between traditional search and AI Chatbot without switching apps or websites. Its Gemini program has also had a ton of success, as users have been pouring in the popular “Nano Banana” tool, and it is about to launch its other products.
After all this is a data advantage No competition can match. Alphabet has decades of behavioral data, huge video libraries through YouTube, and an unmatched ranking in search results that feeds its Gemini models. It also has a large two-way ad network that spans decades of properties, which can handle anything from global ground to local campaigns. This is just the competition that comes up, and why alphabets have such a wide range of content.
Alphabet’s biggest growth engine, for now, is cloud computing. Last quarter, Google Cloud’s revenue rose 32% to $13.6 billion, while operating income was more than $2.8 billion. Demand was so strong that the company raised its capital budget this year from $75 billion to $85 billion to increase its data capacity.
Alphabet’s strength in Cloud Computing comes from its integrated model. It is the only cloud provider with its leading AI model, customized AI chips, and leading software systems. In addition, it has its own fiber network to ensure high speed and low latency. All this helps to give the company a cost advantage. And it’s looking to build on this with its pending acquisition of Wiz, which will give it a leading cloud computing platform.
Besides search and cloud computing, Alphabet also has bets from its business Waymo Robotaxi and its Quantum Computing Division. Waymo’s Robotaxi Fleet is already operating in several US cities and is expanding rapidly. If Alphabet can reduce costs and scale this business, it has the potential to be a major driver of future growth. In addition, the willow quantum chip represents a real technological advance in reducing prices, which is one of the biggest challenges facing quantum computers. Together, these new bettors add a lot of choice to the likes.
Despite all this, the shares trade in the Forward Price-to-Deal-Realing (P / E) ratio below 24 times the expected earnings of 2026. That’s lower than most of Alphabet’s peers.
Between a leading business, an emerging bet, and an attractive valuation, Alphabet is one of the best performing stocks in 2026. This is a stock you will want to invest in for both the next year and the long Haul.
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* Stock advisor returns from October 13, 2025
Geoffrey Seiler has positions in alphabetical order. The Motley Fool ranks and praises grains and apples. The Motely Fool has a disclosure policy.
What are some of the best AI stocks to own in the next year? originally published by the motely fool
