Why Alphabet Stands Out
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The Gemini AI from Alphabet is one of the world’s most popular generative AI models.
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They’re creating an innovative quantum computing chip to eliminate reliance on third-party tech.
In the current tech investment scene, artificial intelligence (AI) is all the rage. Big players in AI are pouring tons of money into their computing power to expand the possibilities of this technology. We’re still just scratching the surface of what AI is capable of, and it’ll take a while before we see the full impact due to the current limitations in computing resources.
Another exciting advancement on the horizon is quantum computing. This tech has the potential to ramp up AI capabilities to unimaginable levels, but its effectiveness is still being validated.
Imagine having both hot trends under one investment opportunity! Luckily for investors, there’s a company stepping up to make that happen: Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Alphabet is diving deep into both artificial intelligence and quantum computing, making it a strong player in these emerging sectors.
Alphabet Emerges as a Leader in AI
Many of you might recognize Alphabet as the company behind Google, but they’ve got many other strategies up their sleeves. With impressive cash flow, they’ve smartly invested in various sectors, resulting in their current success.
At one point, investors worried that generative AI could overshadow Google Search, which is Alphabet’s cash generator. However, it seems the concern was unwarranted—the Google Search still holds strong with massive user engagement and revenue. Just recently, their search segment saw a healthy 12% year-over-year growth! Not bad for a supposedly declining business, right?
One of the newest features, combining traditional search with generative AI into a neat summarization at the top of the results, showcases Google Gemini, the driving force behind this innovation. This development makes Gemini one of the most utilized AI models globally, giving Alphabet a fantastic edge for refining its technology.
Add to this the fact that Gemini consistently ranks among the top generative AI technologies, and Alphabet undoubtedly leads the charge in this field. They’re also investing heavily into quantum computing technologies, presenting a bright future where strong AI and functional quantum chips can merge.
Alphabet’s Position in Quantum Computing
Things escalated when Alphabet announced it readying their Willow quantum chip back in December 2024, which managed to accomplish a task that would take classical computing an unfathomable 10 septillion years! While primarily a proof of concept, this significant achievement illustrates Alphabet’s direction in quantum computer advancement.
The brilliant strategy here is that Alphabet is custom-building their quantum chip instead of relying on outside suppliers. Right now, they get GPUs from Nvidia and tailor-made AI accelerators from Broadcom. These suppliers raise costs, which is something Alphabet aims to avoid. By bringing quantum computing in-house, Alphabet stands to reap greater profits.
This integration makes it a lot simpler to fit quantum capabilities into AI frameworks and might even boost their cloud computing offerings down the line—able to loan out quantum computing services!
The future will tell if Alphabet nails its quantum ambitions, but there’s no denying its already solid position in the AI sector. The difference in resources compared to standalone quantum companies gives Alphabet a satisfying cushion to aim for a practical quantum chip. This synergy between AI and quantum tech makes Alphabet an incredibly attractive stock option right now—ideal for those looking to invest with a promising outlook for the next decade.
Is $1,000 Worth Investing in Alphabet Today?
Before putting your money into Alphabet stocks, take a moment to reflect on this:
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*Returns are noted as of September 29, 2025
Keithen Drury holds shares in Alphabet, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia, while also recommending Broadcom. Our disclosure policy is available here.
