Will it be Nvidia that gets there first? Or could Alphabet or SpaceX do it? Let’s discuss.

The path to $10trn

To try and answer this question, I’m going to look at three things:

• Market-cap today.
• Current valuation.
• Growth drivers.

By looking at these three different factors, we might be able to get some clues as to which company’s likely to hit $10trn first.

Market-caps

In terms of market-cap today, Nvidia has the largest at $4.7trn (as I write on 30 June). Alphabet isn’t far behind though – it’s at $4.3bn. Zooming in on SpaceX, it’s at $2.2trn. So it’s a fair bit smaller than the other two.

What this means is that it’s going to require the least work, in terms of market-cap appreciation, for Nvidia to get to $10trn. It only needs a little more than a doubling in size to get there. By contrast, SpaceX would need to grow its market-cap almost five-fold from here. That’s a much tougher ask.

Valuations

Turning to valuations, Nvidia currently trades on a forward-looking price-to-earnings (P/E) ratio of 15 using the next financial year’s earnings forecast. Meanwhile, Alphabet’s on 24.

SpaceX doesn’t have a P/E ratio because it’s not expected to be profitable next year. It does have a price-to-sales ratio though – that’s about 30 using next year’s revenue forecast which is very high.

So Nvidia’s the cheapest stock today by a wide margin. This could help it get to $10trn first. Because at current levels, there’s scope for an upward valuation re-rating.

This is less likely with the other two names because they look fairly valued and overvalued respectively (in my view).

Growth drivers

As for growth drivers, all three companies have them. For Nvidia, AI chips should continue to drive growth. But so should new technologies in areas such as robotics and self-drive cars.

For Alphabet, cloud computing and AI (including AI chips) are likely to be key sources of growth. YouTube could be another major driver though.

With SpaceX, I see its two main growth drivers as satellite broadband and AI compute. The AI side of the business is worth highlighting here – if the company can continue landing deals with hyperscalers and AI labs, it could see strong revenue growth in the years ahead.

My call

Putting this all together, I’m going to rule out SpaceX as the first $10trn company. It definitely has some exciting growth drivers but I just can’t see the company’s market-cap increasing five-fold any time soon.

That leaves us with Nvidia and Alphabet. And to be honest, I think both have a decent chance of hitting the milestone first.

My gut feeling however, is that it’ll be Nvidia. With its higher market-cap and lower valuation, I reckon it’s likely to be first to $10trn.

Of course, if AI spending slows dramatically, my thesis could come unstuck. However, with hyperscalers expected to spend a significant amount of money on the AI buildout again next year, I think the company’s prospects look pretty good and that it’s worth considering as an investment.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Edward Sheldon owns shares in Nvidia, Alphabet, Apple, and Amazon.

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I sold it because I thought it had become overvalued. Since then though, it has risen further — and the emerging AI narrative arguably boosts the investment case.

So should I buy it again?

Tech giant with multiple focuses

The share in question is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the owner of Google. YouTube, Waymo and other tech businesses.

One criticism sometimes levelled at other well-known growth shares such as Apple and Meta Platforms is that they basically have a fairly narrowly defined core business and can therefore find it hard to adapt.

Whether that is a fair critique is a matter for debate. Apple has a thin product range but is wildly profitable. Meta owns multiple properties beyond Facebook, such as Instagram.

Household name with proven adaptation ability

But something I like about Alphabet is that its subsidiaries feel closer to fully-formed distinct businesses to me than Meta’s do. Instagram and Facebook are basically different nodes to the same platform, as I see it.

By contrast, Google search and Waymo’s self-driving cars may benefit from interconnection, but seem like more mutually robust businesses to me than, say, Instagram would be if it was broken off from the wider Meta advertising platform.

Why does that matter? It is about longevity. To survive let alone thrive for the next 50 years, I think Meta will need to reinvent itself dramatically. That explains why it experimented with the metaverse and is now doing the same with its AI push.

Alphabet will also need some reinvention, but it has proactively been doing that for a long time already. it strikes me as well-adapted for an uncertain future.

AI: boom or bust?

An example of that is AI. AI was initially perceived as a risk to Alphabet by many investors, as it threatens to decimate demand for Google’s core search business.

But by investing massively in AI, Alphabet has grasped the nettle of a possible threat and sought to turn it into an opportunity.

That may work. Alphabet has a large installed user base and lots of technical know-how. But the AI build-out is hugely expensive. That is the rub.

Indeed, Alphabet announced this month that it will seek to raise $80bn by selling new shares, diluting existing shareholders. For a company that has had enormous free cash flows as one of its main attractions, I see that as an alarming development.

Alphabet’s current price-to-earnings ratio of 24 is not outrageous, given the company’s strength. But heavy spending on AI could see earnings fall.

Although I continue to see this as a brilliant company, the growth share is not attractively valued right now, in my view. So I will not be investing.

Should you invest £5,000 in Alphabet right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Alphabet made the list?

Christopher Ruane has no position in any of the shares mentioned.

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The top- of 2026 have been semiconductor equipment companies. But I’m starting to wonder about the early signs of a slowdown.

What’s happened?

Earlier this week, Alphabet (NASDAQ:GOOG) announced plans to raise $80bn. The reason is simple – it’s got spending commitments to meet.

The firm is planning to spend between $180bn and $190bn this year. And it’s looking to raise $80bn in cash by issuing shares.

In the grand scheme of things, this isn’t a big deal. It’s set to raise around Alphabet’s outstanding share count by around 2%.

That’s less than the amount it’s repurchased through share buybacks in the last few years. So again – nothing earth-shattering.

What is interesting, however, is that Alphabet is issuing shares, rather than taking on debt. I think that looks significant.

Debt levels

Alphabet hasn’t been afraid to borrow over the last few years. Total debt has increased from $10.9bn to $77.5bn since 2024.

Source: Fiscal.ai

The firm’s balance sheet is still pretty strong. But I think it’s significant that it’s looking to keep it that way. 

Raising $80bn from investors isn’t straightforward. Alphabet has had to turn to Berkshire Hathaway for part of it. 

This raises an important question. How long can the company keep raising cash to finance its data centre spending plans?

I think this could be a sign that AI spending is nearing its peak. And if I’m right, it’s probably worth paying attention to.

Big tech

It’s not just Alphabet. Amazon and Microsoft have also materially increased their debt levels in recent years to support spending.

The main beneficiaries of this have been companies involved in building data centres. And that’s been reflected in share prices.

The iShares Semiconductor ETF is up 178% over the last 12 months. That’s compared with a 29% increase for the S&P 500.

So far, nobody wants to show signs of slowing their spending. But it’s getting harder to see how the growth rates can be maintained.

That’s why I think Alphabet shifting from debt to equity is a warning sign. So what should investors do?

Warning signs?

The good news for investors is that they don’t have to do anything different. Whatever the stock market does, some things stay the same.

Investing well is about looking for companies that look undervalued. And that means cheap relative to their future cash flows.

This is what investors need to focus on. If they can get that right, what the market does in the next few months won’t matter over time.

That doesn’t mean slowing spending is irrelevant. It matters a lot when it comes to assessing semiconductor equipment stocks. 

What it does mean, however, is that investors shouldn’t worry about when the next downturn comes. Instead, they should focus on the long term.

What about Alphabet?

Alphabet isn’t on my list of stocks to buy right now. I’ve got my eye on what I think are more obvious opportunities.

I don’t, however, think investors need to start worrying – at least, not yet. The company is still in a very strong position.

The firm’s AI investments, however, have implications for the wider stock market. And these are worth paying attention to.

Stephen Wright owns shares in Amazon, Berkshire Hathaway, and Microsoft.

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Recently, Berkshire posted its 13F filing with US regulators, giving investors like us a glimpse of its trading activity last quarter. And while there were a few interesting trades in Q1, one stood out above the others.

A massive buy

The trade I’m referring to is buying activity in Google owner Alphabet (NASDAQ: GOOG) (NASDAQ:GOOGL). In Q1, the firm added 36.4m shares of the GOOGL ticker, increasing its position size by over 200%, and 3.6m shares of the GOOG ticker (a new position).

As a result of this buying, the company held 54.2m GOOGL shares and 3.6m GOOG ones at the end of the quarter (making Alphabet a top 10 holding). At today’s share prices, those stakes are worth a total of about $23bn.

I’ll point out that while it’s still early days, this trading activity already looks very profitable for the firm because since the end of Q1, Alphabet has soared to new all-time highs.

We don’t know exactly what prices Berkshire paid for its shares. But given that both tickers were in the high $200s in late March (and are now in the highs $300s), it’s most likely sitting on a huge profit.

A trade worth following?

Should investors consider following Berkshire and buying Alphabet shares today? Personally, I think it could pay to wait.

To my mind, the growth stock is a little expensive today. At present, the forward-looking price-to-earnings (P/E) ratio is about 27.

That’s miles above its 10-year average P/E ratio. And to my mind, it doesn’t leave a lot of room for a setback (like a slowdown in global advertising spend or cloud computing/AI spend).

I’d probably want to see the P/E ratio below 25. I’d consider buying more shares myself if it was in the low 20s.

I’ll point out that I do see a lot of long-term growth potential here. Looking ahead, this company is well placed to generate growth from cloud computing, chips, generative AI, digital advertising, self-driving cars, and more.

I’m particularly excited about the potential in the chip space. Recently, the company has done deals with the likes of Meta Platforms, Apple, and Anthropic.

I’m also excited about the potential of its generative AI app Gemini, now that it’s being integrated across the Google platform. It’s worth noting that in Q1, Gemini Enterprise saw 40% quarter-on-quarter growth in paid monthly active users, which shows that businesses are using this (and not just Anthropic’s Claude and OpenAI’s ChatGPT).

But valuation is important. And right now, I think there are better stocks to consider buying given the lofty earnings multiple here.

Edward Sheldon has positions in Alphabet and Apple.

The post Warren Buffett’s company just made a $23bn bet on this Magnificent 7 growth stock appeared first on The Twelfth Magpie.

Before I buy a share, there are three questions inspired by Warren Buffett I tend to ask myself. If I answer even one of them negatively, that will typically be the end of my thought of buying that share at that moment.

Do I understand the business?

Warren Buffett talks about aiming to stay inside his circle of competence when investing.

In other words, he aims to avoid things he does not understand.

That seems simple enough. When a hot new stock is soaring, though, it can be easy to get carried away with its momentum and not pay enough attention to the underlying business.

But if I do not really know what a company does and what its sector looks like, I cannot assess its competitive advantages and how its prospects look.

Does the balance sheet put me off?

Most people’s idea of a good way to spend a few hours is not poring through hundreds of pages of a company’s accounts.

Then again, most people do not have anything like the stock market success of Warren Buffett.

Buffett pays close attention to a company’s published accounts before investing – and for good reason.

A listed company is obliged to include certain information in its accounts, such as its borrowings and cash flows.

Understanding such figures can help someone get a detailed picture of a business.

During the 2008 financial crisis, when Lehman Brothers hoped Warren Buffett might step in to help save it, the Sage of Omaha did not rely on endless meetings with Lehman’s management to make the call.

He sat down and read the company’s most recent publicly available accounts for a few hours. He saw red flags that made him decide then and there he would not be investing.

Is the price attractive?

Early in his career, Warren Buffett was what is known as a value investor.

As the name implies, he was focused on buying things cheaply.

Later, in a shift he credited to his partner Charlie Munger when they were negotiating to buy See’s Candies, Buffett changed approach. Rather than focusing exclusively on cheapness, he now sought to buy into attractive companies at what he called fair prices.

I think this makes sense. Take Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) as an example.

The share price is up 134% over just one year and 235% over five. I think the company continues to have great prospects. But at its current price, I am not ready to buy. Why?

Alphabet currently sells for 30 times earnings. That may not seem outrageously high, especially in the context of tech shares today.

But I see it as being on the expensive side.

Yes, Google is a strong brand with a huge user base. YouTube has ongoing growth potential and AI could help propel Alphabet’s earnings higher by reducing staff costs.

But it could do the opposite. Like peers, Alphabet is spending heavily on infrastructure for AI. Its AI rivals also pose a threat to its search business.

So although I see it as a great business, the current Alphabet stock price strikes me as high. For now, I will not be investing.

Christopher Ruane has no positions in Alphabet. The Twelfth Magpie has recommended Alphabet. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners. Here at The Twelfth Magpie we believe that considering a diverse range of insights makes us better investors.

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Looking at the stock today however, I see similarities to Alphabet (NASDAQ: GOOG) (Google) back in mid-2025 when it was out of favour and trading near $150 (it has since soared to near $400). Here’s why I think Microsoft could be set to surge at some point just like Alphabet has.

Examining Alphabet’s rebound

In mid-2025, a lot of investors were completely writing Alphabet off. The theory was that ChatGPT was going to disrupt Google search and destroy Alphabet’s business model.

Alphabet didn’t sit around doing nothing as people started to use ChatGPT for search. Instead, it used its financial resources and tech expertise to build an AI product equally as good (Gemini), and then integrated it into its ecosystem, winning back market share.

Additionally, it worked on developing its own powerful AI chips, tensor processing units (TPUs). It’s now selling these to other tech companies, meaning that it has a whole new revenue stream.

Ultimately, it was able to adapt to the changing business landscape and continue thriving (its latest earnings showed revenue growth of 19% at constant currency). As a result, its share price has rebounded, soaring to new all-time highs.

Could Microsoft do the same thing?

Now, I reckon Microsoft is capable of a similar turnaround. Today, it’s out of favour because people are expecting its software sales to fall due to AI disruption and automation. This is a risk. But here’s the thing – Microsoft’s finding new ways to generate revenue.

For example, in its recent earnings it told investors that its AI-powered digital assistant service Copilot now has 20m paid enterprise seats. This service costs around £15 a month per user, so that’s a fair bit of revenue.

Meanwhile, like Alphabet, Microsoft’s also developing its own chips. Earlier this year, it announced the launch of Maia 200 – an inference chip designed to improve the economics of AI token generation.

These chips are not being sold to other companies today. But if the company was to sell them to other businesses, there could be a whole new source of revenue.

Ultimately, there are many ways that Microsoft could reinvent itself for the AI era. I expect it to do just that – this is a company with a history of evolution.

The stock’s cheap today

Zooming in on the valuation, Microsoft looks quite cheap. Looking at the earnings forecast for the year starting 1 July, the forward-looking price-to-earnings (P/E) ratio’s only 21. At that multiple, I see the potential for an upward valuation rerating if the company can show that it’s having success in the AI era. In the past, it has often traded on P/E ratios in the 30s.

Of course, there are no guarantees the stock will perform well from here. AI automation is a risk and sentiment towards the stock could remain weak.

At current levels however, I like the risk/reward set-up and believe the stock’s worth considering. It’s worth noting that the average analyst price target is $564 – about 35% above the current share price.

The post Could buying Microsoft stock now be like buying Alphabet in mid-2025 at a share price of $150? appeared first on The Twelfth Magpie.

The question is – which is the better option to consider buying for an ISA today? Is it smarter to go for the high-flying Alphabet or the beaten-up Microsoft?

Which tech company’s performing better?

Both companies produced strong earnings reports earlier this week. However, Alphabet’s was the stronger of the two.

For the quarter, it posted:

• Total revenue of $109.9bn, up 22% (19% at constant currency).
• Cloud revenue of $20bn, up 63%.
• Earnings per share (EPS) of $5.11, up 82%.

One highlight of its results was that Gemini Enterprise saw 40% quarter-on-quarter growth in paid monthly active users. This shows institutions are increasingly using Alphabet’s AI services.

Turning to Microsoft, it posted:

• Revenue of $82.9bn, up 18% (15% in constant currency).
• Cloud revenue of $54.4bn, up 29%.
• EPS of $4.27, up 21%.

On the earnings call, CEO Satya Nadella said that Microsoft Copilot now has 20m paid enterprise seats. This suggests its AI services are gaining traction in the business world too.

Looking at the numbers, both companies are performing well. But it’s hard to ignore Alphabet’s cloud growth – it’s very impressive.

What do analysts like more?

After the earnings, Wall Street analysts have been scrambling to update their price targets for Alphabet. I counted increases from 23 different firms. The average price target of those firms is $427. That’s about 17% above the current share price.

Turning to Microsoft, the broker activity wasn’t as bullish. While some analysts raised their price targets, others reduced them. That said, the average price target here is still well above the current share price at $569 (about 40% above). So analysts remain very bullish in general.

Which stock’s cheaper?

Focusing on valuations, Microsoft is the clear winner here. After Alphabet’s recent rise, it’s now quite expensive – its forward-looking price-to-earnings (P/E) ratio is about 29.

Looking at Microsoft, it’s trading on a forward-looking P/E ratio of about 21 when we take the earnings forecast for the financial year ending 30 June 2027. So it’s far cheaper than its Mag 7 rival.

Which is riskier?

As for risks, both companies face them. For Alphabet, a major risk is a slowdown in advertising spending. From an investment perspective, the valuation’s also a risk – this doesn’t leave any room for a slowdown.

As for Microsoft, a key risk is white collar job losses – this could lead to less software license revenue. Another is the company’s exposure to OpenAI – ChatGPT’s losing market share to Gemini and Claude.

My call

Weighing all this up, it’s actually really hard to pick a winner. Alphabet has more momentum right now, both operationally and from a trading perspective, but Microsoft’s far cheaper.

Ultimately, I think the best stock to consider comes down to an individual’s investment approach. If more focused on momentum, Alphabet is in a strong uptrend. However, when more focused on value, Microsoft looks cheap.

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Both revenues and profits grew significantly. But the real highlight for investors was the growth in the artificial intelligence (AI) division.

Growth

Alphabet’s overall revenues in the first quarter of 2026 grew 22%. That’s a big number, but earnings per share increased by a massive 82%.

Part of that was due to a revaluation in some of the firm’s investments. But operating income – which excludes this – was still up 30%. 

There’s nothing to dislike there. Beneath the surface, however, the real highlight was the firm’s Google Cloud division, which grew 63%. 

That matters for a couple of reasons. One is that it means Alphabet’s cloud computing division is growing faster than Amazon or Microsoft.

The other is that it goes a long way towards justifying the ongoing investments in data centres. It’s a sign that – at least for now – there’s real demand.

Alphabet’s results were terrific. But with the share price now up 131% in 12 months, is it too late to consider buying?

Google Cloud

Google Cloud’s 63% growth is hugely impressive. It’s well ahead of the 28% that Amazon’s AWS achieved in the same quarter. 

Investors should note, though, that this is partly a function of size. It’s not the result of Alphabet’s unit generating higher revenues. 

In terms of sales, AWS added $8.32bn while Alphabet’s unit added $7.8bn. That amounts to a different growth rate because Google Cloud is smaller.

I think that’s important for investors. It doesn’t suggest to me that customers are choosing Alphabet over Amazon – at least, not yet. 

As I see it, the latest results indicate that both are doing well. It’s just that AWS is a bigger business and this is what leads to higher growth rates.

To some extent, that doesn’t matter – Google Cloud has more market share available to win. But I think it’s worth keeping in mind for investors.

What’s coming next?

Alphabet announced that it’s planning on increasing its spending to between $180bn and $190bn this year. And it’s expecting this to be a lot higher in 2027.

That’s not as much as Amazon. But it’s a lot in the context of a cloud division with significantly lower quarterly sales.

Investors had been viewing this with suspicion. Strong demand for computing power, however, seems to have alleviated those concerns.

That makes sense. It does, however, offer a marked contrast to the way the stock market is viewing software companies at the moment. Several software firms have been reporting strong earnings. But they don’t seem to be able to do anything to convince investors that their growth is durable.

I think it’s worth keeping something similar in mind with Alphabet. The latest update is very strong, but one report doesn’t make an investment thesis.

Opportunity missed?

Its results are outstanding and it’s no surprise to see the stock rising. Right now though, I don’t think it’s the most obvious cloud computing stock. 

With its antitrust issues of last year now well behind it, the business looks very attractive. But at today’s prices, I’m looking at other opportunities in this space.

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Indeed, just yesterday (8 April) we saw some shares surge on the back of the latest developments in the Middle Eastern war.

But while that may offer some short-term relief to investors, I think it is also a stark reminder of how fragile investor sentiment currently is. Yesterday was a good day in the stock market – but there could be more painful days ahead.

I think now is the perfect time to get ready for a dramatic stock market crash, in fact.

The value of preparation over market timing

That does not mean I necessarily expect a crash soon.

Sure, I see lots of reasons why a dramatic crash could make sense. Oil prices have lately surged. That will probably push up inflation substantially.

Geopolitical tensions are high, shipping rates are all over the place and investors are nervous. None of those factors tend to be positive for the stock market overall.

But markets can and do defy negative circumstances. Conversely, sometimes they struggle even when the economy is strong and businesses are doing well.

That is why it can be a costly mistake to try and time the market.

We know it will crash sooner or later. I also reckon there are good reasons why that could happen soon – but there is no certainty it will. As John Maynard Keynes said, markets can remain irrational longer than you can stay solvent.

My solution?

Instead of trying to time the market, I am getting ready scoop up some potential bargains in the next crash – whenever that turns out to be.

Separating business quality from current share price

In practice, that means I am updating a watch list of companies that I would like to invest in if I could do so at an attractive price.

These are firms I think have great businesses. So, you may wonder, as a long-term investor, why do I not simply buy them now?

The answer is valuation.

Even a great company can make a poor investment if someone pays too much for it.

As stock market crashes can be short-lived, I want to be ready to act when the next one happens. That could happen at any moment, so I see now as the time to keep my list updated.

Here’s a share I have my eye on

One name on my list is Google owner Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).

Its share price has surged 180% over the past five years. At 29 times earnings, it may not look as obviously overpriced as some tech firms.

Still, that price is too high for my tastes. Alphabet faces risks ranging from its massive investment in AI infrastructure not paying back to a weak economy eating into advertisers’ willingness to spend on YouTube ad slots.

Still, the underlying business remains strong.

Google, YouTube and other Alphabet businesses benefit from the company’s tech strength, massive user data and strong brand awareness.

The motive to switch to a different provider is often low. Barriers to switching can be high for Alphabet’s enormous installed base of regular users. That ought to help long-term profitability.

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In reality, though, a crash can be terrifying for some share owners, but a terrific opportunity for other investors.

Let me explain why.

When, not if

Just as British people famously love to talk about the weather even with no control over it, some investors love to pontificate on what might happen next in the market despite having no influence over that.

The reality is that nobody knows with certainty when the next stock market crash will be. A lot of time and effort is spent trying to time the market. To my mind it is poorly spent.

While we do not know when the next crash will be, history teaches us that there will be one sooner or later.

That could be tomorrow – or it could be years from now. Either way, I think it pays to be prepared and try to turn a stock market crisis into an investing opportunity.

What a crash really means

One reason people fear a stock market crash is because they are worried it could send the value of their share portfolio plummeting.

That is true – and it can be an alarming thing to experience.

But – and this is a crucial point – that is only the paper value. In other words, the market is providing a constant valuation of their shares but they can ignore it if they choose.

It is like owning a home, boat, coin collection, or anything that has some market value. That value may go up and down while you own it. But until you sell, any loss or gain is just on paper.

Mixing the wheat and the chaff

Some shares go down in a stock market crash and recover only slowly, if at all.

Maybe they were overvalued in a pre-crash bubble. Or perhaps the crash and wider financial shifts have changed their underlying business value.

But as panic grips the market and people start dumping their holdings, sometimes indiscriminately, perfectly good shares can be dramatically marked down in price even though their underlying investment case may not have changed.

That can be an opportunity to scoop up some blue-chip bargains.

Getting ready now

Such opportunities, though, can be short-lived. So it makes sense to be ready.

To that end, I make and update a shopping list of shares I would like to own, if only I could buy them at an attractive enough price.

One name on my list is Google and YouTube owner Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).

The share has been buffeted at points over the past couple of years by concerns about whether AI will hurt its search business. But that seems like ancient history now, given how the Alphabet stock price has been doing. For now, it remains too high for me to buy.

I do think AI could be a risk to search. But it could be an opportunity too. It may help Alphabet customize its content even more and deepen its already strong customer loyalty.

Alphabet has a proven business model that generates large amounts of cash (though AI expenditure could eat into that).

It owns strong brands, has a massive customer base, and has the technical expertise to try and turn AI to its advantage, in my view.

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