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Analyst Explains Why He Likes Alphabet (GOOG) Valuation

We recently published Top 10 Trending Stocks to Watch Ahead of Nvidia Earnings. Alphabet Inc. (NASDAQ:GOOG) is one of the top trending stocks to watch ahead of Nvidia earnings.

Daniel Newman, Futurum CEO, explained in a CNBC program last month why he is bullish on Alphabet stock.

“Now their generative AI stack looks great. They’re building their own infrastructure, their chips, they look really well positioned. And if I’m an investor, I’m looking at the whole situation, I’m saying look, you know, you’re seeing Teslas out, you know, 100 plus, you know, forward. Google actually has all the tech. Waymo, they’ve got YouTube. I mean, and I was going to say YouTube is dominating TV. You see the graphic in the Journal this weekend. Like YouTube is becoming TV. Yeah, same with Netflix. And yet, so here I am using ChatGPT, honestly more like Google than ever before. But it seems like the business not only can absorb that, but have other levers to pull on. Yeah, I really like that they’ve been able to be successful training their own models on their own infrastructure. I love Nvidia. There’s no secret there. But if I’m Google and I want to build a vertically integrated stack, I want to increase my margin. I want to diversify the business and have more control of my longevity. I’m really liking that. And like I said, at the price, even with the recent run-up, there’s just a lot to be optimistic about. So, Alphabet looks to be in really, really good shape. Like on the other side though, you know.”

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Sands Capital Technology Innovators Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:

“We sold Alphabet Inc. (NASDAQ:GOOG) based on concerns about the future of its internet search business amid the growing adoption of generative AI. While Alphabet has many components necessary to thrive in the world of AI, search queries have begun to decline as consumers increasingly turn to generative AI assistants. Even if the current search share loss is not having a meaningful impact on monetization, competitors are building out functionality that should shift monetization from Alphabet to the primary large language model providers. For this reason, our confidence in Alphabet’s ability to sustain above-average growth has declined and we chose to exit the position.”

While we acknowledge the risk and potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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