Alphabet Emerges as a Leading AI Stock with $22 Billion Tech Infrastructure Investment

Google parent Alphabet (GOOGL) has solidified its position as a top artificial intelligence play, with shares hitting an all-time high in September after a 35% rally in 2025. The company's $22 billion second-quarter tech infrastructure spend underscores its AI ambitions.

Despite antitrust rulings against its search business, Alphabet's AI-enhanced services drove 14% YoY revenue growth to $96.4 billion last quarter. Its Waymo robotaxi division, now logging 100 million autonomous miles, expands through partnerships with Uber and Lyft.

What sets Alphabet apart is its ability to retain users amid competition from OpenAI and Perplexity while maintaining reasonable valuations. The company's vertical integration—from AI-powered search to autonomous vehicles—creates multiple monetization pathways as AI adoption accelerates.