We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. Alphabet Inc. (NASDAQ:GOOGL) ranks #10 (see the 5 best stocks to buy now here).
Alphabet Inc. (NASDAQ:GOOGL) rapid shift from a search-first company to an AI powerhouse has been remarkable. Alphabet Inc. (NASDAQ:GOOGL) was quick to go all-in on its Gemini AI product and the results are already visible. Gemini Enterprise has reached 8 million seats. With a $30 per user/month price, it translates to a roughly $2.8 billion annual revenue run rate from a product that essentially didn’t exist two years ago.
While AI engines are impacting Alphabet Inc. (NASDAQ:GOOGL) search/ads business, analysts believe it can offset those declines with agentic commerce and AI native ads in Gemini. Gemini crossed 750 million MAUs in early 2026, up from roughly 450 million a year prior.
Google Cloud is fast becoming a viable income stream that could offset the major transition Alphabet Inc. (NASDAQ:GOOGL) search business is seeing. In the recently reported quarter, Google Cloud revenue rose 48% year over year to hit a $70 billion annual run rate in 2026. About 75% of Google Cloud customers now use Gemini-powered tools.
GOOG shares are up 90% over the past 12 months. The stock’s forward P/E of 27–29x is still in line with its 10-year historical average and lower than major tech stocks like Microsoft and Amazon, while maintaining faster-than-average cloud and AI growth. This makes GOOG one of the best stocks to buy for 2026 and beyond.
Jensen Quality Growth Equity Strategy in its Q4 investor letter explained how AI is improving Alphabet’s business instead of threatening it. Read the letter here.
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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