<div id="readability-page-1"><p><strong>Alphabet</strong> <span>(GOOGL<span> -2.00%</span>)</span> <span>(GOOG<span> -2.00%</span>)</span> stock reached an all-time high price of $207.05 on Feb. 4, riding a wave of strong growth and earnings momentum from 2024. For shareholders, the last few months have been challenging with concerns over the strength of the global economy rattling the broader stock market. At the time of writing on April 11, shares of Alphabet are down 24% from that record high.</p> <p>Despite this turbulence, what hasn't changed is the ongoing artificial intelligence (AI) revolution. Innovations in areas like machine learning, automation, and generative AI are rapidly transforming the global economy. Alphabet is at the forefront of this wave, poised to capitalize on significant long-term growth opportunities.</p> <p>Here are four reasons I believe Alphabet is the best AI stock to buy right now.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTQ1MjkvYWxwaGFiZXQtYWktYnVsbGlzaC1zdG9jay1vdXRsb29rLTIwMjUuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="350" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTQ1MjkvYWxwaGFiZXQtYWktYnVsbGlzaC1zdG9jay1vdXRsb29rLTIwMjUuanBnJnc9NzAw"/></p><p>Image source: Getty Images.</p> </div> <h2>1. Alphabet's AI leadership</h2> <p>Alphabet's AI strategy stands out, integrating machine learning, generative AI, and automation across its ecosystem. The company's diverse user base in market-leading platforms such as Google Search, YouTube, Android, and Chrome is an edge within the tech sector, leveraging vast amounts of unique user data to support its cutting-edge AI models.</p> <p>This AI prowess is evident in Google Cloud, which has been a major growth driver capturing exceptional demand. That includes the unique Tensor Processing Units (TPUs) -- a custom chip designed by Google to power its specific AI workloads. Alphabet CEO Sundar Pichai commented on the company's unique positioning and the benefits of its vertically integrated AI strategy. In the fourth-quarter earnings conference call, Pichai said: &#34;We have a unique advantage because we develop every component of our technology stack, including hardware, compilers, models and products. This approach allows us to drive efficiencies at every level, from training and serving, to developer productivity.&#34;</p> <p>Several growth tailwinds support Alphabet's long-term outlook and AI leadership consolidation, including:</p> <ul> <li><span>Google Cloud and its AI solutions are well positioned to continue capturing market share from competitors like <strong>Amazon</strong>'s AWS and <strong>Microsoft</strong>'s Azure.</span></li> <li>Android's 3 billion devices worldwide offer a significant opportunity to monetize AI applications, such as the Gemini generative AI chatbot.</li> <li>YouTube has emerged as a social media powerhouse, with accelerating revenue from subscription services driving positive operating income.</li> <li><span>Alphabet's self-driving car unit, Waymo, is testing autonomous rides in over 10 cities and has established itself as an early leader in the autonomous vehicle sector.</span></li> </ul> <p>The best part is the sense that Alphabet is just getting started.</p>  <h2>2. Tariffs resiliency</h2> <p>I appreciate Alphabet's high-quality fundamentals, scale, and diversification, which are crucial amid the uncertainty surrounding trade tariffs under the Trump administration.</p> <p>Unlike its tech peers, such as Amazon and <strong>Apple</strong>, Alphabet's core digital advertising business, which accounted for 78% of its revenue last year, is largely shielded from tariffs on imported goods. With over half of its business outside the U.S., Alphabet appears resilient, with indications suggesting it's business as usual into the second quarter.</p> <h2>3. An earnings juggernaut</h2> <p>After a record-breaking 2024 with 14% revenue growth and earnings per share (EPS) of $8.04, Alphabet is expected to continue delivering stellar earnings growth and strong free cash flow. Wall Street analysts project further upside, including double-digit revenue growth in 2025 and an EPS estimate of $8.90, representing an 11% year-over-year increase. Recent cost-saving measures, such as reported headcount reductions, could support profitability margins to exceed earnings forecasts.</p> <p>With a solid balance sheet and $96 billion in cash, Alphabet is well-equipped to navigate any macroeconomic environment.</p> <div><table> <tbody> <tr> <th scope="col">Metric</th> <th scope="col">2024</th> <th scope="col">2025 Estimate</th> </tr> <tr> <td>Revenue</td> <td>$350.0 billion</td> <td>$389.3 billion</td> </tr> <tr> <td>Revenue growth (YOY)</td> <td>14%</td> <td>11.2%</td> </tr> <tr> <td>EPS</td> <td>$8.04</td> <td>$8.90</td> </tr> <tr> <td>EPS growth (YOY)</td> <td>38.6%</td> <td>10.7%</td> </tr> </tbody> </table></div> <p>Data source: Yahoo! Finance. YOY = year over year.</p> <h2>4. Alphabet's attractive valuation</h2> <p>Alphabet stands out as a top AI stock because of its bargain valuation. With a forward price-to-earnings (P/E) ratio of 17, Alphabet trades at a discount to its &#34;Magnificent Seven&#34; peers, including AI titans Apple, Amazon, <strong>Meta Platforms</strong>, Microsoft, and <strong>Nvidia</strong>, which average around 26. Given Alphabet's double-digit earnings growth, there's a case to be made that shares are undervalued.</p> <p><img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/f96f48f14275fe4e3bcf7ee0fba35860.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="524" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/f96f48f14275fe4e3bcf7ee0fba35860.png"/></p> <p>GOOGL PE Ratio (Forward) data by YCharts</p> <h2>The bottom line</h2> <p>I'm bullish on Alphabet, viewing the recent stock price weakness as a buy-the-dip opportunity.</p> <p>While risks persist, including regulatory scrutiny and a delicate macroeconomic environment, the company's AI leadership positions it to emerge stronger. As long as Alphabet continues delivering profitable growth, it may just be a matter of time before the stock makes a new all-time high.</p>                                                                            </div>

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

<p>Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. <br><br>According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.</p>

NVIDIA Financial Results for Q4 Fiscal 2025

GOOG

GOOGL

<p>Alphabet (GOOGL) stock has seen a decline of 24% from its all-time high of $207.05, but the company remains a leader in the AI sector. With a strong AI strategy, diverse user base, and significant growth in Google Cloud, Alphabet is well-positioned for long-term growth. The company is resilient against trade tariffs, has a solid earnings outlook with projected revenue growth, and is attractively valued compared to peers. Despite market challenges, Alphabet's AI leadership and fundamentals suggest it could be a prime investment opportunity.</p>

- Alphabet's stock reached an all-time high of $207.05 on February 4, 2024, but has since declined 24% amid global economic concerns.  
- The company is positioned to benefit from the ongoing AI revolution, leveraging its leadership in machine learning and automation across platforms like Google Cloud and YouTube.  
- Despite challenges, Alphabet's strong fundamentals, projected earnings growth, and attractive valuation suggest it remains a compelling investment opportunity in the AI sector.

4 Reasons Alphabet Could Be the Best Artificial Intelligence (AI) Stock to Buy Right Now