Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

Alphabet выглядит как качественный бизнес с очень сильной рентабельностью, но рынок уже закладывает в цену высокий уровень ожиданий. Выручка выросла до 113.8 млрд, а чистая прибыль — до 34.5 млрд, что подтверждает масштаб и устойчивость денежного потока. Маржа чистой прибыли 32.8% и операционная маржа 32.0% остаются исключительно высокими и почти не ухудшаются по годам, что говорит о стабильной эффективности. ROE 35.0%, ROA 25.1% и ROI 32.8% заметно выше отраслевых ориентиров, поэтому фундаментальная операционная сила компании не вызывает сомнений. При этом мультипликаторы выглядят дорогими: P/E 35.3, P/S 12.45, P/B 11.96 и P/FCF 43.5 существенно выше медианы отрасли, а это ограничивает потенциал переоценки. Динамика мультипликаторов тоже не дает сильного аргумента в пользу агрессивного повышения оценки: за последние периоды они в целом оставались высокими, а местами даже росли. Баланс у компании очень крепкий: cash on hand 126.8 млрд, current ratio 2.0 и debt/equity 0.11 указывают на комфортную ликвидность и низкую долговую нагрузку. Однако рост long-term debt до 46.5 млрд и увеличение total liabilities требуют осторожности, хотя на фоне огромного капитала и денежных резервов это пока не выглядит критичным риском. Дивидендная доходность остается символической и снижается, поэтому дивидендный фактор почти не поддерживает оценку. Собственный капитал и активы продолжают расти, что подтверждает расширение бизнеса и накопление стоимости, но это уже частично отражено в высокой цене акций. В сумме фундаментал сильный, но не настолько недооцененный, чтобы оправдывать заметное повышение целевой цены. Для инвестора это скорее история про высокое качество и устойчивость, чем про явный дисконт, поэтому корректировка прогноза должна быть умеренно отрицательной.

Alphabet Inc.

Средний индекс, значительно упал. Быки в растерянности.

Medium index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок не поддерживает быков.

Strong index, slightly up. The market does not support the bulls.

Средний индекс, значительно вырос. Приток средств в лонги увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into longs has increased and is at a high level.

Сильная рентабельность и баланс Alphabet сочетаются с дорогими мультипликаторами, поэтому фундаментал поддерживает качество бизнеса, но ограничивает апсайд.

Key Points
Alphabet shareholders already have meaningful indirect exposure to SpaceX through its stake.
Expect intense post‑IPO volatility in SpaceX and treat any position as a long‑term investment.
As excitement builds around a potential SpaceX (NASDAQ: SPCX) investment, many Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) shareholders already hold indirect exposure through its stake. Discover why leverage, volatility, and a long‑term mindset matter so much by watching the discussion in the video below.
*This video was published on Jun. 12, 2026.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Lou Whiteman has no position in any of the stocks mentioned. Sanmeet Deo, CFA has positions in Alphabet. Tim Beyers has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy SpaceX After Its IPO if You Already Own Alphabet Stock?

Key Points
TSMC will continue to benefit no matter who is in the AI lead.
Alphabet's Gemini is already a fierce AI competitor.
Nvidia still dominates AI processors, and more growth opportunities could be around the corner.
Artificial intelligence (AI) stocks have been volatile this year, with some companies posting big gains, followed by a recent sell-off in many semiconductor stocks.
But three companies that are still outperforming the S&P 500 year to date are Taiwan Semiconductor Manufacturing (NYSE: TSM), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Nvidia (NASDAQ: NVDA).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
And there are some good reasons to believe that these three AI stocks could remain solid long-term winners. Here's why.
TSMC wins no matter who leads the AI race
Taiwan Semiconductor Manufacturing, widely known as TSMC, is the world's leading semiconductor manufacturer, making about 70% of all processors and nearly 90% of all advanced processors. Essentially, if a large tech company needs AI processors made, it's going to hire TSMC.
That's been a huge boon to the company's chip manufacturing business over the past few years (sales rose 32% in 2025 to $121 billion), and there could be more growth on the way as tech giants boost demand for AI processors. The company estimates that by 2030, the global chip market will be worth $1.5 trillion, with AI processors leading the demand.
One of the unique angles TSMC has in AI is that it benefits from all of the AI processor demand, regardless of who is leading the race. Whether OpenAI, Anthropic, Meta Platforms, Alphabet, or some new AI start-up buys up piles of AI processors, they'll likely be placing their orders through TSMC.
Alphabet's AI ubiquity is already hard to ignore
Alphabet is taking a leading role in AI through its fast-growing Gemini AI model. The company has grown its user base by more than double over the past year to more than 900 million users.
While Gemini may not be as popular as OpenAI's ChatGPT and Anthropic's Claude, I don't think Alphabet has to have the dominant model to benefit from AI. Consider that Alphabet already attributed the 63% growth in Google Cloud sales (reaching $20 billion) in the first quarter to its expanding AI services.
What's more, Gemini is now implemented across many of Alphabet's services, including YouTube, advertising, Search, Google Workspace, and more. With such a massive reach among its large user base, Alphabet can play the long game with AI and slowly raise prices or introduce new tiers with more AI features to boost revenue.
And investors are already seeing Gemini directly make money for Alphabet. Apple is using Gemini as a core part of its AI model for the new version of Siri and will pay Alphabet a reported $1 billion annually to use it.
Nvidia will likely remain king of AI processors for years
After years of being at the top of many AI investors' buy lists, it may seem odd to continue beating the buy Nvidia drum. But even amid rising competition, Nvidia remains the leading AI processor company. Nvidia has about 86% of the AI data center revenue market share, leaving rival AMD with just 7%.
And Nvidia's sales and earnings continue to impress. Revenue rose 85% in the most recent quarter to nearly $82 billion, and diluted non-GAAP (generally accepted accounting principles) earnings popped 140% to $1.87 per share.
Nvidia's shares are also relatively inexpensive compared to many other AI stocks. Nvidia stock has a price-to-earnings (P/E) ratio of about 30 right now, compared to 150 for AMD and 62 for Broadcom.
What's more, I think there could be higher demand for Nvidia's processors in the near future as robotics and autonomy industries take off. Nvidia believes there could be millions of humanoid robots in the coming decades that will need high-end processors, and RBC analyst Toom Narayan believes the robotics industry could be worth $9 trillion by 2050.
When you add it all up, Nvidia still looks like a great long-term AI play.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Broadcom, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 AI Stocks Poised for Long-Term Gains Despite Strong Year-to-Date Performance

Key Points
Alphabet will be both a big AI infrastructure spender and winner.
TSMC is set to benefit from both increased AI capex and more types of chips going into data centers.
ASML is the company that makes AI possible with its EUV machines.
Goldman Sachs recently predicted that artificial intelligence (AI) infrastructure spending could climb to between $920 billion and $1.4 trillion next year, up from the more than $700 billion expected to be spent this year. Those are some huge numbers, and there undoubtedly will be some nice winners in the space.
Let's look at three under-the-radar AI stock winners set to benefit from this surge in data center capital expenditures (capex).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is set to be both one of the big spenders and winners when it comes to AI infrastructure spending. The company plans to spend between $180 billion and $190 billion this year, with a significant increase in 2027. However, if there is any company that should be pushing up its capex spending, it's Alphabet.
The reason is that the company currently has a significant cost advantage with its tensor processing units (TPUs). By being less reliant on Nvidia's graphics processing units (GPUs) than its competitors, it is getting more bang for its buck with its AI infrastructure spending. This lets it train its Gemini model at significantly lower cost than peers and also save huge costs on inference. In many cases, this can also help provide it with a better return with Google Cloud, which is growing rapidly.
Alphabet's TPUs have become so well regarded that it is now allowing select customers, such as Anthropic, to place orders directly with co-developer partner Broadcom. This adds another high-margin revenue stream for Alphabet. Between this and its TPU cost advantage, this is a stock set to win from surging data center capex.
2. Taiwan Semiconductor Manufacturing
AI chip spending is now not only going up, but it is also widening. That's great news for Taiwan Semiconductor Manufacturing (NYSE: TSM). Whether the spending is going to GPUs, custom application-specific integrated circuits (ASICs) like Alphabet's TPUs, or high-performance central processing units (CPUs), this all benefits TSMC, which has a virtual monopoly in the manufacturing of advanced logic chips.
While chip designers will inevitably look to second source their manufacturing base if possible, right now they are beholden to TSMC, as it is the only foundry that has both the scale and expertise to produce advanced logic chips in mass quantities with high yields (few defects). This has made the company an integral partner with leading chip designers, who must turn to TSMC not only for help securing capacity but also for planning their entire chip roadmaps. As more chip companies fight to secure fab capacity, this benefits TSMC, which has already shown it has strong pricing power. Recent reports indicate the company will raise prices on its newer 3nm chips by 15% later this year.
This all makes TSMC one of the best stocks to own as spending on AI infrastructure continues to ramp.
3. ASML
While TSMC manufactures advanced logic chips, ASML (NASDAQ: ASML) provides the machines that make this possible. In fact, without its technology, there would be no AI infrastructure boom, as it is the only company in the world with extreme ultraviolet (EUV) lithography technology.
EUV machines are what make GPUs and other advanced chips possible, making ASML one of the most important companies, even though it is not a household name.
In addition to being needed in the manufacturing of advanced logic chips, these machines are also used to make high bandwidth memory (HBM), while its older DUV machines can also be used in the memory-making process. Its EUV machines cost upwards of $200 million, so these are pricey pieces of equipment, and the company is seeing robust demand from both foundries like TSMC and the big memory makers.
As AI capex continues to climb, ASML is a great under-the-radar stock to own.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends ASML, Alphabet, Goldman Sachs Group, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Under-the-Radar Ways to Play Goldman's $1 Trillion AI Spending 2027 Forecast

Key Points
Anthropic says its new Claude Fable family of models is as powerful as the Mythos model that it chose not to release to the public.
Over the past several months, the company has signed a number of partnerships with AI hyperscalers.
Chipmakers, cloud providers, and capacity partners are becoming increasingly important for Anthropic as the company rapidly scales up.
Fresh off a $65 billion Series H funding round and the confidential filing of its S-1 with the Securities and Exchange Commission, Anthropic has unveiled its most powerful large language model to date, Fable 5.
Let's explore what makes Fable so distinctive in the world of frontier artificial intelligence (AI). From there, I'll suggest four top stocks that are poised to benefit as Anthropic's model capabilities create new demand and opportunities across the AI system.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
What makes Claude Fable different than other generative AI models?
What truly distinguishes Fable is its design for agentic work rather than isolated prompt responses. Since the model features coherent reasoning and execution across extended sessions, it is inherently designed for autonomous handling of multistep projects that previously required constant human oversight.
In business environments, Fable has demonstrated strong performance in software engineering, where it can complete applications, build functional games, or iterate on existing user interfaces with minimal guidance. It extends beyond simple image recognition, making it capable of deeper interpretation of diagrams, charts, tables, and nested content within files.
Which hyperscalers benefit from the release of Claude Fable 5?
Like all frontier AI models, Fable relies on huge parallel processing power during both training and inference. Over the last several months, Anthropic has deepened its technical collaboration with Nvidia (NASDAQ: NVDA) through architecture optimization and large-scale deployments that incorporate the chipmaker's Blackwell and Vera Rubin GPU architectures.
This relationship will drive higher volumes of chip procurement and accelerate the adoption of Nvidia's full-stack ecosystem. As businesses adopt Fable for more demanding AI workloads, Nvidia should capture sustained hardware demand that supports its leadership in the accelerated computing landscape.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will also be a quiet winner from Fable's development. Like Nvidia, Google Cloud supplies Anthropic with access to its custom Tensor Processing Units (TPUs) for training needs.
Anthropic already runs workloads through Google Cloud's Vertex AI platform. Fable's release is likely to increase the scale of this operation. This will allow Alphabet to monetize both its data center capacity and its proprietary custom silicon hardware while deepening integration between its cloud infrastructure platform and Anthropic's AI model development.
Amazon (NASDAQ: AMZN) has one of the largest infrastructure commitments in the AI sector with Anthropic. Their multiyear agreement secures 5 gigawatts of new AI capacity, featuring substantial use of Amazon's custom Trainium and Inferentia chips. Their relationship also includes a $100 billion commitment over the coming decade from Anthropic to continue using Amazon Web Services (AWS) as its primary cloud provider.
SpaceX is the hidden winner with Claude Fable
SpaceX (NASDAQ: SPCX) is aggressively carving out a distinctive role in AI infrastructure by leasing cloud capacity. A new arrangement with SpaceX grants Anthropic access to 300 megawatts of new capacity featuring a cluster of more than 220,000 Nvidia GPUs. Per the terms of the deal, Anthropic will pay SpaceX $1.25 billion per month over the next three years.
For SpaceX, the relationship with Anthropic represents an ability to monetize its advanced data center infrastructure, which was originally developed for its own needs. The partnership converts some of that AI capacity into a steady revenue stream while positioning SpaceX as an emerging hyperscale compute provider.
In my view, Fable's arrival will accelerate infrastructure spending across a number of partners while offering end users a different level of AI-powered assistance.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Adam Spatacco has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

These 4 Artificial Intelligence Stocks Have Room to Run Thanks to Anthropic's New Fable Model

Key Points
Memory and storage stocks are having a strong 2026.
Micron trades near $1,000, and investing in top performers like Samsung and SK Kynix is not easy for U.S. investors.
The Roundhill Memory ETF offers a way around the issues some investors are facing.
Companies have been making memory and storage solutions for decades, but it was artificial intelligence (AI) that recently woke up the sleepy sector. That's allowing specialized memory and storage providers like Micron Technology, Samsung Electronics, and SK Hynix to cash in.
Unfortunately for investors, owning those companies isn't the most straightforward. It costs nearly $1,000 to own a full share of Micron, while Samsung and SK Hynix are based in South Korea and do not offer American depository receipts (ADRs), making it more difficult for U.S. investors to own shares.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
SK Hynix did recently file for a listing of ADRs on a U.S. exchange, but the exact timing of when shares could be listed is still unclear.
Nevertheless, there's a way to participate in the success of all three stocks immediately for less than $70: the Roundhill Memory ETF (NYSEMKT: DRAM).
The access DRAM provides
The Roundhill Memory ETF launched on April 2 and, as of June 12, held 15 positions. Through total return swaps, which provide access to a stock through a derivative contract without ownership, and direct ownership, Micron is one of the top holdings in terms of portfolio weight of the exchange-traded fund (ETF).
Micron provides memory and storage solutions for personal computers, mobile phones, and the automotive industry, but shares have really taken off thanks to AI; the Micron stock price is up nearly 250% on the year. Micron offers a portfolio of data center memory solutions, which is helping drive record revenue. For the company's fiscal second quarter 2026 (ended Feb. 26), revenue for its core data center business unit was $5.6 billion, an increase of 211% from the $1.8 billion reported in the same period a year prior.
For Samsung, another top holding of the ETF, it also offers memory solutions like Micron. But unlike Micron, it focuses on more than just memory, providing a one-stop shop for logic, memory, foundry, and packing solutions. It recently launched samples of its high-bandwidth memory HBM4E chip, which companies like Nvidia and Alphabet need for AI accelerators. On the Korea Exchange (KRX), shares are up more than 150%.
Switching gears to SK Hynix, another significant holding in the RoundHill Memory ETF, it's more like Micron than Samsung in terms of purely focusing on advanced memory and storage offerings. In a big win for the company, it just landed a multi-year agreement with Nvidia to partner on AI memory chips. On the KRX, shares have jumped more than 200% for the year.
The risks and rewards
If the fervor for memory and storage stocks dies down, this ETF would be hit with losses particularly hard, as there's little room for it to hide. Just recently, shares dropped 17.7% from June 3 to June 10. That said, the memory and storage market is becoming less cyclical as AI creates constant demand, which creates a stronger backstop for memory and storage makers than they've had in the past.
Roundhill Memory holds some of the top memory and storage companies, offers access to Micron for less than $1,000, and gives U.S. investors a way to invest in SK Hynix and Samsung without dealing with international trading. As a small position in a well-rounded portfolio, the Roundhill Memory ETF can offer long-term upside for investors who can handle short-term volatility.
Should you buy stock in Roundhill ETF Trust - Roundhill Memory ETF right now?
Before you buy stock in Roundhill ETF Trust - Roundhill Memory ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roundhill ETF Trust - Roundhill Memory ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Samsung, SK Hynix, and Micron Are Fighting for AI Memory Dominance. Here's How You Can Buy All Three for About $65.

Key Points
Berkshire Hathaway just made a big bet on Alphabet, tripling its stake last quarter and upping it by another 50% recently.
Alphabet is now Berkshire's fourth-largest position.
At first glance, the buy seems expensive for Berkshire's value investing ethos. But there may be a larger strategy at hand.
The generative artificial intelligence (AI) revolution is in full force, with agentic AI now catapulting AI-related stocks to new heights.
Still, those who remember the internet boom and bust know that many darlings of that boom didn't become long-term winners. Some even went bankrupt. However, those who eventually emerged as winners of that boom became some of the world's biggest companies, making up most of today's "Magnificent Seven."
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Today, the multitrillion-dollar question is, who will be the winner of the AI revolution? Well, Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) Greg Abel just made a big bet that one of the Magnificent Seven internet-era winners will also win the AI races -- and Berkshire's investment itself could help make that bet a reality.
Berkshire triples down on Google
In the first quarter -- Abel's first with total control over Berkshire's investment decisions -- Berkshire more than tripled its investment in Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
In addition to tripling down on Alphabet stock last quarter, Berkshire subsequently said it would buy another $10 billion worth of the $80 billion equity raise that Alphabet recently announced on June 1. That would equate to another 28.6 million shares, increasing Berkshire's stake by another 50%, barring any additional Alphabet purchases made since March 31.
As of this writing, Berkshire's combined 86.7 million shares (that we know about) would amount to about a $30.9 billion stake at today's share price. That would make Alphabet Berkshire's fourth-largest public equity holding, behind only Apple, American Express, and Coca-Cola.
Alphabet has survived, now primed to thrive in AI
Back when Berkshire first established its position in Alphabet, I wrote that the likely reason was a reacceleration in Search-related paid clicks, which occurred in the second quarter of 2025 and was subsequently reported in the third quarter, when Berkshire took its initial position.
Alphabet was the cheapest of the Magnificent Seven stocks at that point due to fears that generative AI could disrupt Google Search, Alphabet's main cash cow. However, after Alphabet innovated and introduced features such as AI Overviews and AI Mode within the Search bar, paid clicks reaccelerated. That appeared to prove that the Search business wasn't going away, thanks to Alphabet's innovation.
However, Alphabet's stock has roughly doubled over the past year, and its valuation has risen accordingly. No longer is Alphabet the typical value investment that investors have come to expect from Berkshire. Berkshire's investment in Alphabet at a high-20s price-to-earnings (P/E) ratio indicates a conviction not only in Alphabet's survival but also its long-term competitive advantage in generative AI.
Alphabet's advantage over start-up rivals
Today, three large language models are currently regarded as the most advanced: Gemini by Alphabet, ChatGPT by OpenAI, and Claude by Anthropic. It seems as though Berkshire now believes Alphabet will win the generative AI race.
Both OpenAI and Anthropic are still private and, as of the latest data, remain unprofitable -- although Anthropic is projected to turn an operating profit for the first time this quarter. Still, Alphabet's current profitability, with $160 billion in net income over the past 12 months, dwarfs both companies' financial resources by a lot.
Aside from having much more financial resources, Alphabet also has another big cost advantage: It builds its own data centers and designs its own chips, called Tensor Processing Units. This is in contrast to OpenAI and Anthropic, which have to rent capacity from other clouds at a margin, on top of those clouds generally running more expensive Nvidia graphics processing units (GPUs).
If Alphabet has competitive AI algorithms, its current cost advantages should allow it to serve tokens to customers at a lower cost while also enabling it to provide more capacity amid insatiable demand. This could be what Berkshire sees.
An $80 billion raise could extend the advantage
Both Anthropic and OpenAI have been raising capital in private markets this year, and each has filed to go public, likely later in the year. AI token demand is booming, and each needs to buy computing resources to meet it.
But Alphabet pre-empting those IPOs by raising an additional $80 billion on top of its internal cash flow not only matches the upcoming raises for Anthropic and OpenAI but could also even extend its advantage by raising this amount first.
This is because memory and chips are currently in short supply, with large companies prepaying and committing to buy semiconductors and high-bandwidth memory over multiple years. If Alphabet can make larger commitments earlier, that could box out competitors or raise the price of compute for everyone else, including Anthropic and OpenAI, who have fewer financial resources.
At this critical juncture in the AI race, with the winners yet to be determined, this strategic move could make a big difference.
There were once many search engines, too
Back in the early days of the internet, before Google emerged, there were many search engines. However, Google emerged as the dominant, near-monopoly on this incredibly profitable business. It appears that Greg Abel thinks Alphabet still has the core competency to pull off a repeat with generative AI -- a market that could be multiples larger than Search is today.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
American Express is an advertising partner of Motley Fool Money. Billy Duberstein and/or his clients have positions in Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Berkshire Hathaway's Greg Abel Just Made a Big Bet on Who Will Win the AI Races -- And He's Even Tipping the Scale in Its Favor

Key Points
Most S&P 500 index funds are market-cap weighted.
An alternative approach is an equal-weighted fund.
Both can serve you well, and one looks less risky.
What's the investment I've recommended most often for most people? A low-fee exchange-traded fund (ETF) that tracks the S&P 500 index, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF (NYSEMKT: SPY). I suspect many of my colleagues would say the same. Even Warren Buffett has recommended it. In his 2016 letter to shareholders, he noted, "Over the years, I've often been asked for investment advice... My regular recommendation has been a low-cost S&P 500 index fund."
So I'm sorry to point out that it's not a perfect kind of investment. It has some issues.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
What's wrong with the S&P 500?
Here's a big one: It's way more concentrated than most people realize. For example, check out its recent top 10 components:
Company
Weight in S&P 500
Nvidia
7.43%
Alphabet (A and C share classes)
6.59%
Apple
6.48%
Microsoft
4.35%
Amazon.com
3.92%
Broadcom
2.74%
Tesla
2.26%
Meta Platforms
2.17%
Micron Technology
1.65%
Berkshire Hathaway
1.56%
Those weightings may not seem huge until you remember that there are about 490 other companies. These 10 above represent about 2% of the index's holdings but 39% of its total value. So if you invest in the S&P 500 because it's a great way to be quickly and easily invested in 500 of America's biggest companies, you are invested in those companies, but more than a third of your investment is in these 10 companies alone.
Here are the weightings of some other companies:
Company
Rank in S&P 500
Weight in S&P 500
McDonald's
54
0.30%
PepsiCo
59
0.29%
Pfizer
80
0.22%
Kroger
261
0.06%
Clorox
468
0.02%
As you can see, you won't have much invested in the vast majority of the companies.
That can be OK, though. Maybe you like those tech heavyweights in the top 10 -- which include all of the "Magnificent Seven" stocks (Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla). Maybe you want to invest in the 500 companies, with most of your money going to the biggest. After all, most of them have grown very rapidly over the past few years.
Keep in mind, though, that when there's a stock market crash or correction, as there invariably is now and then, those high-flying growth stocks are often the ones that fall harder. That, too, can be OK as long as you have a very long-term investing period. But it's not ideal.
Is there a better alternative to the S&P 500?
There is an alternative to standard S&P 500 index funds that's worth considering: An equal-weighted one. Standard ones are weighted by market cap, meaning the larger a company's market cap, the greater its weighting. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), in contrast, is equal-weighted. The 500 components are rebalanced quarterly, so between rebalancings you'll see fluctuations in the weightings as various stocks gain or lose value from day to day and year to year. Check out its recent top 10 holdings:
Company
Weighting
Dell Technologies
0.48%
SanDisk
0.48%
Intel
0.42%
Advanced Micro Devices
0.42%
Humana
0.40%
Micron Technology
0.40%
Hewlett Packard Enterprise
0.40%
Seagate Technology
0.40%
ON Semiconductor
0.35%
Western Digital
0.35%
Note that Micron Technology appears in both top 10 lists, but in the earlier one, it has a 1.67% weighting, while in the fund above, it has a much lower weighting of 0.35%. This kind of index fund has you much more invested in the other 490 stocks beyond the top 10 -- though, of course, each stock has a relatively minor weighting. But every promising stock will have an equal chance of outperforming for you.
An equal-weighted S&P 500 ETF may not grow as fast as a market-cap-weighted one, but during a market downturn, it may hold its value a bit more. Over the past 15 years, this ETF has averaged annual gains of about 12%, while the Vanguard S&P 500 ETF has averaged 14.4%. There's a trade-off, but it's not enormous. Give equal-weighted S&P 500 index funds some consideration.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Selena Maranjian has positions in Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Pfizer. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Hewlett Packard Enterprise, Intel, Meta Platforms, Micron Technology, Microsoft, Nvidia, Pfizer, Tesla, Vanguard S&P 500 ETF, and Western Digital. The Motley Fool recommends Kroger and ON Semiconductor and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Have S&P 500 Index Funds, Often Touted as the Best Stock Investments, Become Dangerous? There's a Worrisome Development -- and a Possibly Better Alternative.

Key Points
The stock has fallen significantly below its previous peak, yet the business continues to grow rapidly.
One Fortune 100 company saved $10 million in quarterly costs from using SoundHound's new agentic AI platform.
There is competition, but SoundHound offers pure exposure to a market that could be worth tens of billions in the next decade.
After surging to new all-time highs over a year ago, SoundHound AI (NASDAQ: SOUN) stock has plunged 72%. Yet the business continues to expand rapidly, with revenue surging 52% year over year in the first quarter.
Is this an ideal time to buy shares, or does the volatility signal a problem with the growth story?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
SoundHound AI is a volatile stock but patient investors could be rewarded. It has spent 20 years collecting data from user interactions to develop its voice AI technology. Restaurants and automakers are using it to power drive-thru ordering and in-car assistants.
The company recently unlocked another huge opportunity with its OASYS agentic AI system. This platform allows businesses to build a fleet of agents that continuously train and improve. One Fortune 100 company has already saved $10 million in quarterly costs by using SoundHound's platform.
Voice AI assistants could be one of the fastest-growing consumer applications over the next decade. The market is expected to reach $47 billion by 2034, growing nearly 35% annually, according to Market.us.
The stock's volatility largely reflects the company's lack of profitability. It reported a $26 million adjusted net loss in the first quarter 2026, and negative free cash flow of $113 million on a trailing-12-month basis. Moreover, SoundHound faces competition from tech giants like Google, which is also working on voice AI technology.
Still, SoundHound AI offers investors pure exposure to this burgeoning market. The recent pullback may provide a more attractive entry point to start a small position. The stock will remain volatile, but the long-term upside could be significant for a small AI company with a market cap close to $3 billion.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and SoundHound AI. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 72%, Should You Buy the Dip in SoundHound AI?

Key Points
Alphabet is issuing stock to help fund its massive AI spending plans.
AI seems to be generating positive returns across Alphabet's various businesses.
The raise will dilute shareholders, so investors probably don't want to see this become a habit.
Tech giant and Google parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has spent billions of dollars buying back its stock over the past decade. But Alphabet is reversing course in a big way, announcing a massive $84.75 billion equity offering earlier this month.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
In other words, Alphabet is selling new shares of stock to raise capital to fund its artificial intelligence (AI) investments. Alphabet has primarily funded its AI spending over the past several years with cash flow. Now, the company is pulling out the stops to win the AI war it's waging with other hyperscalers, including OpenAI and Anthropic. Alphabet plans to spend $180 billion to $190 billion this year alone.
However, it's not clear right now whether that's something investors should celebrate or fear. The AI equity raise could have two implications for Alphabet stock.
1. Alphabet is seeing AI's early returns and leaning in
The AI boom really began to pick up steam in 2023, and you can see how Alphabet's capital expenditures have continued to grow since then. The company developed its Gemini AI models, launched an app to compete with ChatGPT, and integrated Gemini AI across Google Search and other products and services.
At this point, Alphabet seems to be seeing positive returns from AI across its business. AI has boosted its cloud computing business, helped Waymo grow, and is enabling Google Search to remain relevant in the AI era.
Additionally, Alphabet reached an agreement with Apple earlier this year to power its next-generation frontier AI models with Gemini. There are roughly 2.5 billion active iOS devices worldwide, so this is a massive lift that naturally will require more AI infrastructure to support it. So, the positive angle here is that Alphabet can justify this AI spending with years of growth ahead.
2. Investors are now paying Alphabet's AI bill
The unfortunate aspect of this is the shift in funding strategy. It's one thing to use cash profits to build out AI, but the equity raise means that existing shareholders will see their stock diluted. To be fair, the near-term dilution is relatively minor. The $84.75 billion equity raise only represents about 2% of Alphabet's current $4.3 trillion market cap.
Alphabet's balance sheet leverage is only 0.33 times its EBITDA (earnings before interest, taxes, depreciation, and amortization), so the company could easily afford to take on that debt. But it could be that management felt a 2% dilution was cheaper than paying interest on that debt.
Investors probably don't want to see Alphabet make this a long-term habit, as those raises could add up to significant dilution over the years. Remember, issuing new shares also means the company is paying dividends on those shares. That said, this equity raise should raise no red flags right now, since the upside AI offers is too great an opportunity to pass up.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Justin Pope has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alphabet is Raising $84.75 Billion to Win the AI Wars. Should Investors Celebrate or Worry?

Key Points
SpaceX has grand ambitions, but it is actually smaller than these two businesses today.
Anthropic is seeing huge revenue and profit momentum.
OpenAI is falling behind Anthropic in revenue and is reportedly very unprofitable.
We may see three trillion-dollar initial public offerings (IPOs) this year. SpaceX (NASDAQ: SPCX) just debuted with a market cap of $2 trillion, while both OpenAI and Anthropic are planning to raise capital and go public later this year.
Investors, large and small, will have the opportunity to invest in these fast-growing artificial intelligence (AI) stocks, including SpaceX, an AI and space-economy play. But which IPO will be the better buy?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Based on the price, the answer is clear from the financial data.
SpaceX's growth plans
At a $2 trillion valuation, SpaceX is now one of the largest companies in the world by market value. It does not have close to this level of revenue -- $18 billion in 2025 -- but has grand plans for massive revenue growth in the years ahead.
The company generated only a small amount of revenue from rocket launches, and the majority of its revenue last year came from its Starlink internet service. The segment had $11.4 billion in revenue and is growing 50% year over year with nice profitability.
Where SpaceX plans to get even more revenue is from its AI data center ambitions, both on Earth and in orbit. It has already signed deals with Anthropic and Alphabet worth $26 billion a year, but either company can cancel them at any time. The upside remains massive, with the potential to grow to $100 billion in revenue or more in the years ahead if SpaceX cracks the code with its Starship rocket, orbital data centers, and AI computing services.
Anthropic's momentum
Anthropic is the tortoise that has currently overtaken the hare (OpenAI) in AI revenue. Founded just a few years ago, the company's focus on selling AI tools to enterprises has made it one of the fastest-growing start-ups in history.
This quarter, Anthropic is expected to generate $10.9 billion in revenue, or close to $45 billion annualized. If it keeps growing at this insatiable rate, it may hit $100 billion in annualized revenue in the near future.
Plus, unlike SpaceX, which posted an operating loss of $2.6 billion last year, Anthropic is reportedly already profitable. This positions the business to continue scaling its AI enterprise services worldwide. It will be fascinating to see how long it can keep up this exponential revenue growth, and it looks likely to be the fastest time from founding to $100 billion in revenue in history.
OpenAI's massive user base
The last of the three massive AI start-ups is OpenAI, the one that kicked off the AI age with the release of ChatGPT.
OpenAI has the lead in consumer AI services and is making inroads into the enterprise market by competing more directly with Anthropic. Last reports had its revenue hit an annualized rate of $25 billion, but that was a few months ago. It should also be noted that both Anthropic and OpenAI's revenue has not yet been audited by public accountants, so it is not clear whether they currently recognize revenue in the same manner.
Either way, OpenAI is currently lagging behind in the revenue race and has reportedly missed its 2026 targets so far. Plus, it has a reported operating margin of negative 122%, making it extremely unprofitable. Anthropic tries to thread the needle toward profitability while also growing exponentially.
These factors make it clear which stock is the better buy. SpaceX is a different beast, where investors are betting on Musk's vision. If you are a believer, by all means, buy SpaceX stock over OpenAI and Anthropic. But if you look at the size of businesses today and the reported profit figures, Anthropic is the best bet to buy at the IPO if they all debut at valuations similar to SpaceX's.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 14, 2026.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Alphabet Inc.

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