We just covered the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. Alphabet (NASDAQ:GOOGL) ranks #10 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner). Altimeter Capital’s Stake: $162,537,770 Wall Street’s fears about Alphabet’s (NASDAQ:GOOGL) bread and butter (search and ads) haven’t proven to be true so far. […]
We just covered the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. Alphabet (NASDAQ:GOOGL) ranks #10 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner).
Altimeter Capital’s Stake: $162,537,770
Wall Street’s fears about Alphabet’s (NASDAQ:GOOGL) bread and butter (search and ads) haven’t proven to be true so far. The company’s search business is expanding. In Q4, Search usage reached its highest level ever, while AI Mode queries were 3 times longer than traditional searches, suggesting engagement is increasing rather than being displaced. Alphabet’s revenue stream is broadening fast. In Q4, its Cloud business rose 48% year over year, and ended the period with a $240 billion backlog.
YouTube is another underestimated growth catalyst for Alphabet (NASDAQ:GOOGL). The video platform’s revenue exceeded $60 billion in 2025, surpassing Netflix’s revenue in the same period.
But perhaps the strongest growth catalyst for GOOG in terms of AI is its foray into custom chips. Google’s TPU (Tensor Processing Unit) could see high demand as companies start to cut their reliance on expensive Nvidia chips.
Alphabet (NASDAQ:GOOGL) has a long-term deal with Broadcom to build and supply its AI chips (TPUs) through 2031, which helps it secure chip supply and reduce dependence on Nvidia. Anthropic also plans to use about 3.5 gigawatts of Alphabet’s (NASDAQ:GOOGL) TPU compute starting in 2027, showing that outside companies are starting to run large-scale AI systems on Google’s chips.
Montaka Global Investments stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2025 investor letter:
Alphabet Inc. (NASDAQ:GOOGL) has large, valuable core businesses that are clear beneficiaries of larger and more powerful AI models. Therefore, any ‘excess’ capacity that might materialise from the data centre buildout over the coming years will more rapidly be absorbed by their internal needs. So overall, we see the existence of...." (Click Here To Read The Letter in Detail)
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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