If you are still thinking whether Alphabet has finally shed its image of just being that ad company or not, that latest earnings call would have made it clear that Google has just stepped into its AI era. By saying “nearly all Gen AI unicorns use Google Cloud”, Sundar Pichai did not just brag, he made a bold statement in this race for superiority in AI. Alphabet is not just following the trends anymore; rather, it is building the path along which the AI world drives. That’s really impressive and maybe a game-changer for long-term investors.
Alphabet’s double-digit revenue growth across segments, led by Search and Cloud, indicates that AI is no longer a side hustle for Google, it’s central to everything. Alphabet’s cloud and AI growth narrative is only just starting. With Gemini models, YouTube monetization, and cloud infrastructure leadership, the firm is establishing deep, broad channels.
For long-termers, it appears to be a good wager on the AI-powered future. Some experts remain concerned about the rich capital investments ($66B expected this year), intense AI rivalry from Amazon and Microsoft, and regulatory headwinds, particularly in Europe. The question remains whether Alphabet can sustain this rate without margin pressure or not.
Alphabet can currently be fairly valued, but hopes are rising quickly. As the shares are already near their record making highs, some think a lot of positivity is valued in. A slip in execution or AI hype exhaustion could strike sentiment.
Alphabet’s Q2 was indeed very much strategic. With heavy AI integrations, big customer wins, and a robust infrastructure stack, Alphabet is showing it’s not only competing in the AI space, rather it’s actually helping create it. For investors willing to bet on the AI future, Google’s turnaround presents a persuasive argument. Whether or not it’s a screaming buy, what is very certain is that Alphabet is not the old-school Alphabet anymore.
