Alphabet is doubling down on AI with new tools and strong financials, making it a top AI stock pick.
The company has been working on AI since 2001, starting with Google Search’s spelling fixes. Now AI powers Google Search’s camera queries, Maps traffic, and YouTube captions. At its developer conference in May, Alphabet announced Agent Mode, a new AI tool that can handle complex multi-step tasks like web surfing and deep research.
Alphabet’s autonomous vehicle division, Waymo, uses AI to manage rides and improve AV technology. Google Cloud is also a major driver, as companies look to shift IT spending to cloud AI services. 
In Q1 2025, digital ads brought in $67 billion, 74% of Alphabet’s revenue. AI helps automate ad campaigns cost-effectively.
CEO Sundar Pichai said back in 2015:
"We will move from mobile-first to an AI-first world."
Alphabet spent $53 billion on capital expenses in 2024 but still generated $73 billion in free cash flow. It’s investing heavily in servers and data centers to stay ahead.
Shares trade at a forward P/E of 17.5, 22% below the S&P 500 average. Buying $3,000 now and holding long term looks smart.
Alphabet is fully committed to AI, improving current services and building new tools for users and customers.
This isn’t just hype—Alphabet is backing AI with serious cash and tech muscle, positioned well for the AI-driven future.
