Alphabet’s AI Leadership Justifies Premium Valuation in 2025
Alphabet's shares have surged 45% in three months, reaching all-time highs as the tech giant cements its position in artificial intelligence. Trading at a forward P/E of 23.3, the stock commands a justified premium over the broader market given its AI chip development, cloud computing dominance, and 32% operating margins.
The company's economic moat widens through network effects and data leverage, making its $3 trillion valuation a compelling entry point for investors. 'Don't overthink it' remains the MANTRA for acquiring this cash-generating behemoth.