Alphabet Inc. (GOOGL) Strengthens Its Position in AI and Cloud Innovation

Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks to buy, according to billionaire Bill Ackman. On January 12, Alphabet Inc. (NASDAQ:GOOGL)’s market capitalization broke through the $4 trillion mark after Apple announced it would use Gemini models to power its artificial intelligence and next-generation Siri.

Apple Reiterates Trust in Alphabet Inc. (GOOGL)’s AI Products with Gemini Integration Plans

The multiyear partnership will enable Apple to leverage Gemini and Google’s cloud technology for its foundational models. The deal underscores growing trust in Google’s accelerating AI agenda.

“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users,” Apple said in a statement.

The $4 trillion milestone comes on the heels of an impressive 2025, when the stock rallied by 65% amid an artificial intelligence boom. Alphabet has come back rolling after lagging its peers in putting together pieces of its AI and overcoming regulatory hurdles. In addition, the company has positioned itself to take on chip giants by unveiling the seventh generation of its tensor processing units.

Consequently, Citi analysts have touted Google as a top internet pick for 2026 as 70% of Google Cloud customers continue to use the company’s AI products. In addition, the company’s long-term prospects hinge on its chips and infrastructure capacity amid growing demand.

Alphabet Inc. (NASDAQ:GOOGL) is a technology conglomerate that operates a diverse portfolio of businesses. Its purpose is to provide a structured framework for a wide range of ventures, allowing the core Google business to remain focused while other subsidiaries pursue innovative projects independently.

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.