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Alphabet: Still The Most Explosive AI Compounder (NASDAQ:...
Cavenagh Research · 2026-06-25 · via All Articles on Seeking Alpha

Summary

  • Alphabet is a strong buy, as the market still underestimates its multi-layered AI monetization potential despite a premium valuation.
  • GOOGL’s AI-driven Search, Cloud, and TPU monetization are accelerating operating income growth even amid a historic capex cycle.
  • Google Cloud’s $462B backlog and 63% YoY revenue growth provide hard evidence of robust AI infrastructure demand and operating leverage.
  • Agentic commerce and richer AI-powered search queries are expanding Google’s addressable ad market, supporting sustained earnings compounding through 2029.
Google Chicago Fulton Market building. Google is a technology company known for search engine, browser and online advertising.

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AI will kill Google. That was the 2023 debate. It is stale now. At a roughly $4.4 trillion market capitalization and close to 28x trailing earnings, Alphabet is clearly priced as one of the dominant AI beneficiaries. But even after the rerating, the market

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Not financial advice

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