Alphabet Looks Like an AI Underdog, but Here's Why Its Stock Could Be Worth Buying Now
In a move that many would have once considered surprising, investors seem to have written off the artificial intelligence (AI) prospects of Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).The tech conglomerate, which first applied AI to its search engine in 2001, appeared to have lost a step in the AI race, when OpenAI released GPT-4o in 2023. Moreover, a recent commitment to invest heavily in capital expenditures (capex) -- most of which is presumably related to AI -- seemed to scare investors more than it reassured them.Nonetheless, its longtime focus on AI technology and its vast resources will probably show that Alphabet can still compete in this field. Here's why Alphabet bulls should probably stay the course with its stock.Continue reading
In a move that many would have once considered surprising, investors seem to have written off the artificial intelligence (AI) prospects of Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).
The tech conglomerate, which first applied AI to its search engine in 2001, appeared to have lost a step in the AI race, when OpenAI released GPT-4o in 2023. Moreover, a recent commitment to invest heavily in capital expenditures (capex) -- most of which is presumably related to AI -- seemed to scare investors more than it reassured them.
Nonetheless, its longtime focus on AI technology and its vast resources will probably show that Alphabet can still compete in this field. Here's why Alphabet bulls should probably stay the course with its stock.
