Alphabet’s AI Leadership Undervalued Despite Market Dominance
Alphabet Inc. (GOOGL, GOOG) remains a stealth powerhouse in artificial intelligence, trading at a forward P/E ratio below 19x 2026 earnings estimates. The tech giant's Core businesses—search, mobile, and video—continue to thrive alongside emerging growth engines like cloud computing and autonomous vehicles.
Contrary to bearish predictions, Google Search revenue accelerated to 12% YoY growth in Q2, reaching $54.2 billion. AI integration appears complementary rather than disruptive, with over 2 billion users engaging with AI Overviews. The newly launched AI Mode demonstrates particular promise, outperforming traditional search and ChatGPT in user satisfaction surveys according to Oppenheimer data.