Alphabet Inc. (NASDAQ: GOOG, GOOGL) is rapidly advancing its artificial intelligence (AI) capabilities amid a competitive landscape dominated by tech giants and startups like OpenAI. The company recently unveiled a series of AI tools and features, including enhancements for Google Search and a new mixed-reality AI product, aimed at monetizing through subscriptions and advertising.
As part of its strategy, Alphabet is focusing on its Gemini language model, enabling users to engage in various tasks from coding to online shopping. Alphabet plans to invest $75 billion this year, primarily in its Google Cloud division, which supports its AI operations. Last year, Alphabet generated $360 billion in revenue, with $12.26 billion attributed to Google Cloud alone, reflecting a growing profit margin.
With net income increasing by 250% over the past five years to $111 billion, Alphabet’s stock trades at a price-to-earnings ratio below 19. While investors are cautious, recent product innovations may present new buying opportunities for those looking to capitalize on the company’s expanding suite of AI services.
