<div id="readability-page-1">Whenever a publicly traded business faces a big risk or unknown, that can weigh on its valuation. For Alphabet (GOOG 0.21%) (GOOGL 0.28%), the tech giant that owns Google and YouTube, the big concern recently was that antitrust lawsuits would result in it being forced to sell off key parts of its business. Although Judge Amit P. Mehta did rule earlier this month that the company has operated a monopoly in search, he did not impose the most severe consequences that federal regulators had asked for. Alphabet still faces a different antitrust case involving its ad tech, but investors were most worried about the possibility of it having to sell its Chrome browser or Android operating system. With those remedies apparently off the table, the stock rallied over the past few weeks. But was that just the start? Can it soar even higher? <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzQwOTYvaW52ZXN0b3ItbG9va2luZy1hdC1hLWNoYXJ0LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="442" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzQwOTYvaW52ZXN0b3ItbG9va2luZy1hdC1hLWNoYXJ0LmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>Alphabet is among the cheapest stocks in the &#34;Magnificent Seven&#34;</h2> For a while now, Alphabet has been trading at a discounted valuation relative to its earnings. It hasn't been uncommon for it to trade at a price-to-earnings (P/E) multiple below 20, which is low when you consider the average stock on the S&amp;P 500 trades at more than 25 times its trailing earnings. Alphabet has routinely been one of the most undervalued &#34;Magnificent Seven&#34; stocks, and although it has been rallying recently, it's still the cheapest stock based on its P/E multiple, which currently sits at around 27. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/cde20d337e4a881b658eb4ec488b9b4c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="541" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/cde20d337e4a881b658eb4ec488b9b4c.png"/> PE Ratio of Magnificent Seven data by YCharts. Alphabet's relatively modest valuation could attract interest from investors who are looking for potentially underrated artificial intelligence (AI) stocks, especially when you consider its growth potential. <h2>A terrific company with stellar growth prospects</h2> Many investors have been worried about Alphabet's growth outlook, fearing the potential of AI chatbots to divert traffic away from websites and search products, which would cut into its ad revenue. Yet despite the rise of this new tech, its business has continued to generate solid results. Through the first half of 2025, Alphabet generated revenue of $186.7 billion, an increase of 13% from the same period last year. And its net income rose by 33% to $62.7 billion. What's most exciting about the business, however, is what lies ahead. Its own AI chatbot, Gemini, has around 400 million monthly users. The huge advantage the company has over others in the AI space is that it can train its models on YouTube videos. Its video-generation model, Veo 3, features cutting-edge capabilities that make it easy to make AI-powered videos that are virtually indistinguishable from real videos. AI isn't a risk for Alphabet -- it's a massive opportunity. And then there are its self-driving Waymo vehicles. Alphabet continues to expand its autonomous taxi business into new markets. Earlier this year, Waymo hit 10 million robotaxi trips, and there's a lot more growth to come. I've taken a couple of Waymo rides and can see that there's tremendous potential for this business. Alphabet has a wealth of growth opportunities, which is why I believe that even if it had to sell off some parts of its business, that wouldn't necessarily be a bad thing for shareholders. Such a result could help it unlock a lot of value, and might result in investors looking more closely at the true worth of its individual business units. Alphabet's market cap recently hit $3 trillion, and year to date, its shares are up over 30%. But there could be far more upside for the tech company in the long run, given how plentiful its growth opportunities are and how relatively undervalued it still is. For long-term investors, Alphabet should be a no-brainer growth stock to load up on right now. </div>

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Alphabet's stock has rallied recently after a judge's ruling on antitrust concerns, alleviating fears of forced sell-offs of key business units. Despite ongoing antitrust challenges, Alphabet remains one of the cheapest stocks in the "Magnificent Seven" with a P/E ratio around 27. The company reported a 13% revenue increase to $186.7 billion and a 33% rise in net income to $62.7 billion in the first half of 2025. With growth opportunities in AI and autonomous vehicles, long-term investors may find Alphabet an attractive growth stock.

- Alphabet (GOOG, GOOGL) has faced antitrust concerns, particularly regarding its monopoly in search, but recent rulings have alleviated fears of severe consequences, leading to a stock rally.  
- Despite worries about competition from AI, Alphabet's revenue grew by 13% to $186.7 billion in the first half of 2025, with net income rising by 33% to $62.7 billion, showcasing its strong growth potential.  
- With a market cap of $3 trillion and shares up over 30% year-to-date, Alphabet remains an attractive investment due to its undervalued status and numerous growth opportunities, including AI and autonomous vehicles.  

With Alphabet's Biggest Fear Relieved, Is Its Stock Due for a Big Rally?