5 Best AI Stock Picks of Motley Fool Asset Management

2. Alphabet Inc. (NASDAQ:GOOGL)

Motley Fool Asset Management’s Stake: $163.46 Million

Alphabet Inc. (NASDAQ:GOOGL) shares have gained over 100% in the past 12 months. Can the stock keep running? The biggest fear around Alphabet was AI-related threats for its search business. But so far, the company has successfully tackled this potential headwind. In Q4, search and other segment rose 17% year over year. Google still has over 90% of the total market share in search. The company is using AI to counter the threats to its bread and butter. How?

Google Gemini App has reached 750 million monthly active users (MAU)—a massive surge from the 450 million seen at the start of 2025. This growth shows that AI is helping the business rather than hurting it. Alphabet Inc. (NASDAQ:GOOGL) is now showing ads in 25% of these AI results to capture users with “high intent,” especially for shopping. The company uses Gemini to act as a shopping assistant through a new system called Direct Offers. This feature gives personalized deals and loyalty benefits to people who are ready to buy.

Alphabet Inc. (NASDAQ:GOOGL) is also making waves in the AI hardware space. Google is reducing its reliance on expensive Nvidia chips by developing its own hardware, known as Tensor Processing Units (TPUs). A long-term deal with Broadcom secures this chip supply through 2031, helping Google lower costs while building a massive AI infrastructure. External companies are already buying into this system, with Anthropic planning to use 3.5 gigawatts of Google’s TPU power starting in 2027. This shift shows that Google is successfully turning its custom silicon into a high-demand product for the broader AI market.

Alphabet Inc. (NASDAQ:GOOGL) ranks x in our list of the best AI stock picks of Motley Fool Asset Management.

Montaka Global Investments stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2025 investor letter:

Alphabet Inc. (NASDAQ:GOOGL) has large, valuable core businesses that are clear beneficiaries of larger and more powerful AI models. Therefore, any ‘excess’ capacity that might materialise from the data centre buildout over the coming years will more rapidly be absorbed by their internal needs. So overall, we see the existence of large, tech/AI-enabled non-cloud businesses attached to the hyperscalers, not as a risk, but as a major strategic advantage (Click here to see the full text).