Alphabet's Arsenal Has Tilted The AI Search Wars (NASDAQ:GOOGL)

Summary

• Alphabet leverages unmatched global scale and AI innovation, integrating tools like Gemini and SGE across Search, YouTube, and Android to drive engagement and ad revenue.
• Google is evolving beyond ads, building a robust AI infrastructure through Google Cloud, custom TPUs, and a sticky AI ecosystem, fueling rapid enterprise and developer adoption.
• Despite fierce competition and soaring AI-related capex, Google maintains strong margins, impressive earnings growth, and a reasonable valuation, versus peers, supporting its long-term bull case.
• Alphabet’s strategy of embedding AI everywhere and scaling infrastructure positions it as a long-term winner, with risks offset by financial strength and execution.

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