Alphabet Inc. (GOOGL): Billionaire David Abrams Reduces Position - Insider Monkey Alphabet Inc. (NASDAQ:GOOGL) is highlighted as one of the 12 best stocks to buy according to billionaire David Abrams. The company, a leader in artificial intelligence, is featured in the portfolios of numerous elite hedge funds. Its dominance in the AI sector is underscored by significant growth in its Google Cloud division. In the fourth quarter of 2025, Google Cloud revenue rose by 48%, reaching $17.7 billion—a performance that surpassed Microsoft Azure’s growth for the first time in years. This growth is attributed to increased demand for cloud services and the company’s strategic investments in AI-driven infrastructure. Institutional investors are increasingly allocating capital to Alphabet, driven by its substantial $240 billion backlog of cloud contracts at the start of 2026. This backlog is viewed as a key catalyst for future earnings, offering predictable, high-margin revenue streams. Additionally, concerns about AI undermining Google’s search dominance have eased. The introduction of AI Overviews and AI Mode has not only improved user engagement but also boosted search queries, particularly in high-value commercial sectors. These features have demonstrated that AI integration is enhancing, rather than replacing, traditional search functions. While the article acknowledges the risks and potential of investing in Alphabet, it notes that some AI stocks may offer greater upside potential in the short term. Specifically, it references a report highlighting a "cheapest AI stock" with a projected 10,000% upside. However, this recommendation appears to be promotional in nature, as it is presented alongside other paid content.#google_cloud #insider_monkey #alphabet_inc #ai_overviews #david_abrams
Got $1,000 to Invest? This Is the AI Stock I'd Buy if I Could Only Pick One Alphabet stands out as the most comprehensive AI investment opportunity, combining advanced AI models, specialized hardware, and a robust ecosystem. The company’s tensor processing units (TPUs) provide a significant cost advantage, enabling efficient AI training and inference. With its strong position in AI research, cloud computing, and hardware development, Alphabet is positioned as a leader in the evolving AI landscape. The company’s TPUs, developed over a decade ago, have been continuously refined to support its internal workflows and Gemini large language models. These chips outperform traditional GPUs in cost and energy efficiency, allowing Alphabet to train AI models at a lower expense. As hyperscalers invest heavily in AI infrastructure, Alphabet’s ability to leverage TPUs gives it a competitive edge, driving returns on investment while fueling advancements in AI models and cloud growth. Alphabet’s AI integration extends beyond hardware. Google Search, its largest revenue stream, has incorporated AI features like AI Overviews, Lens, and Circle to Search to enhance user engagement. The company also introduced an AI chatbot experience, accessible via a simple click, to streamline interactions. Additionally, its global ad network and partnerships with Apple and Android provide a strong foundation for monetizing AI through targeted advertising and widespread distribution. While Alphabet’s strengths are clear, the article acknowledges that it was not included in a recent list of top stocks by the Motley Fool’s Stock Advisor team. The team highlighted 10 stocks with potential for significant returns, though Alphabet’s exclusion does not diminish its long-term prospects.#alphabet #google_search #ai_overviews #circle_to_search #tensor_processing_units
