Top AI Stock to Invest in Now: Microsoft vs. Alphabet

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Key Facts on Alphabet and Microsoft

Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) both have market capitalizations exceeding $3 trillion, with Alphabet nearing $4 trillion. In Q3 2025, Alphabet’s total revenue was $102.3 billion, including $74.2 billion from advertising. Microsoft reported $77.7 billion in revenue for Q1 FY 2026, with $33 billion from business productivity tools and $30.9 billion from cloud computing.

Alphabet’s Google Cloud revenue grew 34% year over year in Q3 2025, while Microsoft’s Azure revenue rose 40% in Q1 FY 2026. Alphabet’s stock has surged recently following Berkshire Hathaway acquiring a stake and news of potential TPU sales to Meta Platforms.

Currently, Alphabet trades at 31 times forward earnings, slightly more expensive than Microsoft. Analysts suggest that ongoing developments might make Alphabet’s stock a better buy despite its current valuation.

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