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 Inc.

Key Points
Nvidia briefly topped a $5 trillion market cap before sinking back amid competitive pressure.
This artificial intelligence (AI) giant is showing strong financial and operational results across its entire product line.
The stock garners a slight premium, but it can still head higher from here.
Nvidia became the world's first $5 trillion company at the end of October, on the back of strong momentum and optimism for continued growth in artificial intelligence (AI) spending. It's an impressive milestone to be sure, but the stock has since fallen back down 10% to trade firmly in the $4 trillion territory.
As we enter 2026, a handful of stocks are making the case that they're also worth $5 trillion, and Nvidia investors expect to return to that level once again. But one stock stands out as my favorite to reach $5 trillion before anyone else next year.
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A major threat to Nvidia's dominance
Nvidia has produced excellent earnings growth for investors on the back of soaring demand for its GPUs. But ultimately, Nvidia is something of a one-trick pony. If its customers slow down spending or diversify their spending with other chipmakers, there's no other source of revenue that can make up for those losses. That's exactly the fear that sent shares down 10% since reaching an all-time high at the start of November.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has emerged as a meaningful threat to Nvidia's dominance. Alphabet and Anthropic announced a deal for the large language model developer to use its Tensor Processing Units (TPUs) on Google Cloud starting in 2026. Not only will that bring in a meaningful amount of revenue for Alphabet's cloud computing business, but it also represents a serious threat to Nvidia, as a leading AI developer is opting to use Alphabet's custom silicon instead of the leading GPUs.
More recently, a report from The Information said Meta Platforms is also interested in using TPUs for its Llama models. Meta could either rent space on Google's platform or buy the TPUs directly. A Google Cloud executive said Alphabet could generate 10% of Nvidia's revenue from TPUs alone, according to the report.
With analysts' average estimate for Nvidia's revenue at $316 billion for next year, that would imply $31 billion in revenue for Google Cloud from TPUs. For reference, that's roughly half of Google Cloud's current run rate.
But selling TPUs is just a small part of Alphabet's overall artificial intelligence exposure. The company offers a full stack of AI services, ranging from consumer products to cloud computing infrastructure. Each piece of the puzzle supports the others, ensuring a bright future for the company and protecting it against competitive threats.
The full-stack AI company
Many saw the rise of AI chatbots like ChatGPT and Claude as big threats to Alphabet's Google Search business. Indeed, the company experienced slowing growth in search revenue in 2024, but this was not entirely out of the ordinary for the company. Importantly, that trend quickly reversed in 2025, as revenue reaccelerated, climbing 15% in the most recent quarter.
One big reason for the reversal is the growth of AI Overviews and Alphabet's improved monetization of the feature. AI Overviews provide an AI-generated summary of top search results for various queries. Management says the new feature increases overall engagement, and it's now monetizing search results with AI Overviews at the same rate as those without. As a result, they've proven accretive to its overall search revenue.
Alphabet is building on that momentum with the introduction of AI Mode, which pushes users into a chatbot interface with its Gemini AI. That could result in greater subscription revenue or more potential ads if Alphabet incorporates them into the chatbot.
That brings us to the second layer of Alphabet's AI stack. Gemini isn't just a fun chatbot for internet searchers. The Gemini foundation model is used by millions of developers, as are Alphabet's other models, Veo, Genie, and Nano Banana. Management counts over 13 million developers using its models for their apps.
The most recent iteration, Gemini 3.0 impressed many critics. In fact, OpenAI sees the new model as a serious threat to its most recent version of GPT, according to a report from the Wall Street Journal, citing an internal memo from CEO Sam Altman.
The third layer of the AI stack is Alphabet's TPUs, which it uses to train its models. As discussed, it rents out TPU servers via Google Cloud, which is the fourth layer down in the stack.
Google Cloud is growing quickly, with revenue up 34% in the most recent quarter. Its backlog climbed an impressive 82%, indicating a long runway for continued growth. Furthermore, Alphabet's seeing its operating margin expand for the business as it scales, which should mean even stronger earnings growth down the line.
Despite all the growth drivers and diversified revenue streams from AI, shares of Alphabet are still attractive, with a forward price-to-earnings (P/E) ratio of about 29. That's a premium to the market, but the company arguably deserves it, as its diversified revenue and full-stack operations make it less risky than other AI stocks. The company also continues to produce tens of billions in free cash flow each quarter despite heavy investments in AI compute. As a result, it wouldn't be a surprise to see Alphabet climb to $5 trillion relatively quickly in 2026.
Should you invest $1,000 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 $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Adam Levy has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, 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.

Prediction: This Will Be the First Artificial Intelligence Stock to Reach a $5 Trillion Valuation in 2026

Key Points
Apple and Bank of America remain 21.4% and 9.6% of Berkshire Hathaway's portfolio, respectively.
Berkshire purchased Alphabet shares for the first time in the third quarter.
Alphabet achieved its first-ever $100 billion quarter in the third quarter.
After leading Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for 60 years, Warren Buffett is stepping down as CEO at the end of this year at the age of 95. During that span, Berkshire Hathaway has become the poster child for conglomerate holding companies and has been a routine market-beating stock for its investors.
Leading up to Buffett's departure, Berkshire has been making moves, primarily on the selling side. Notably, it reduced its stake in Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC) quite significantly in the past couple of years.
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As of the end of the third quarter, Berkshire Hathaway has reduced its Apple shares to just over 238 million, representing 21.4% of its stock portfolio. It has reduced its Bank of America shares to just over 568 million, making up 9.6% of its stock portfolio.
Arguably more notable than Berkshire Hathaway's recent sales, though, is a recent investment made in Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) because the company has historically steered clear of high-growth tech companies. Now, as Buffett nears the end of his time as CEO, the company owns around 17.8 million shares of the tech giant.
Why the reduction in Apple and Bank of America shares?
Berkshire Hathaway hasn't released an official "this is why we made these moves" statement, but there are two main reasons they make sense. In Apple's case, its valuation relative to projected earnings growth is starting to look a little disconnected.
Apple is trading at 33.6 times its projected earnings over the next 12 months, which is higher than the other "Magnificent Seven" stocks except Tesla and Nvidia. That's a high premium for a company whose earnings have been relatively modest in recent quarters.
In Bank of America's case, this was likely a time to take profits from a stock that Berkshire has made tens of billions of dollars from. Buffett's company began its significant stake in Bank of America in 2011, and since then, the stock is up markedly.
Selling those shares now is a chance to lock in huge profits at a favorable corporate tax rate, which is likely to be higher if (or rather when) it's adjusted. With the profits from both sales, Berkshire Hathaway has increased its large stake in U.S. Treasury bills, which now stands at over $320 billion.
Berkshire Hathaway's entrance into the AI world
Buffett has publicly said that he regrets not investing in Alphabet years ago after noticing that insurance company Geico (a Berkshire Hathaway subsidiary) was paying Alphabet $10 per click on its Google ads. But you know what they say: Better late than never.
Alphabet is one of the few tech companies in Berkshire Hathaway's portfolio, but there's a case that it could be the most promising, especially as it solidifies its position as a key player in artificial intelligence (AI).
It has pioneered key AI research, is creating chips that should challenge Nvidia's current stronghold, owns a network of data centers, and has consumer-facing apps like its generative AI tool Gemini, which is receiving regular praise as a top-of-the-line option.
I don't think Berkshire Hathaway made this investment solely because of AI, but I imagine it helped seal the deal with the direction the technology is going.
When in doubt, follow the cash
Buffett and his managers have always been fans of cash-flow-heavy businesses, which isn't always the case with high-growth tech stocks. However, when it comes to Alphabet, it's most definitely the case. In the third quarter, it achieved its first-ever $100 billion quarter ($102.3 billion, to be precise) and generated nearly $24.5 billion in free cash flow.
Revenue is important, but free cash flow is more noteworthy in some cases because it's money Alphabet can use for things like expanding its business, making acquisitions, buying back shares, and paying dividends. It also helps that the company ended the third quarter with nearly $98.5 billion of cash, cash equivalents, and marketable securities, giving it a lot of leeway to invest aggressively in its business.
Alphabet has a strong balance sheet, a competitive moat in Google Search, and recently began paying a dividend. Those are three boxes the company checks that could further explain why Berkshire Hathaway chose to make the move now.
Should you invest $1,000 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 $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Bank of America is an advertising partner of Motley Fool Money. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Nvidia, and Tesla. 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.

Warren Buffett Is Dumping Apple and Bank of America Shares and Buying This Red-Hot AI Stock to End 2025

Alphabet (GOOGL) closed at $312.43 in the latest trading session, marking a -2.43% move from the prior day. This change lagged the S&P 500's 0.21% gain on the day. Elsewhere, the Dow saw an upswing of 1.35%, while the tech-heavy Nasdaq depreciated by 0.26%.
Heading into today, shares of the internet search leader had gained 11.68% over the past month, outpacing the Computer and Technology sector's gain of 2.05% and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. The company's upcoming EPS is projected at $2.58, signifying a 20.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $94.26 billion, indicating a 15.49% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.52 per share and a revenue of $340.26 billion, signifying shifts of +30.85% and +15.3%, respectively, from the last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 30.44. This represents a premium compared to its industry average Forward P/E of 19.81.
Meanwhile, GOOGL's PEG ratio is currently 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.86.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alphabet (GOOGL) Stock Dips While Market Gains: Key Facts

Key Points
Planet Labs sales growth figures continued accelerating in the third quarter, with revenue rising 33% compared to last year.
The company landed numerous new and expanded deals during the quarter as well.
Now collaborating with Nvidia and Alphabet on different ideas, Planet Labs' future has never looked brighter.
Shares of Earth observation leader Planet Labs (NYSE: PL) rocketed 38% higher this week as of 3 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence.
The data and insights provider delivered accelerating sales growth of 33% in its third-quarter earnings report on Wednesday while delivering a third-straight quarter of positive free cash flow.
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Thanks to the company's faster growth, continued FCF generation, an array of new contracts, and a backlog that more than tripled from last year, the stock soared higher this week.
Planet Labs: Artificial intelligence -- in space
Despite the government shutdown weighing on Planet Labs' civil government business unit -- which only grew sales by 1% -- the company's defense and intelligence unit saw revenue spike by 70%.
During Q3, Planet Labs secured a:
$12.8 million award from the National Geospatial-Intelligence Agency
$13.2 million renewal from the National Reconnaissance Office
$13.5 million order from NASA
$7.5 million renewal from the U.S. Navy
seven-figure expansion from NATO
This is a boatload of incoming deals, especially compared to the total revenue of $81.3 million during Q3.
Planet Labs also successfully launched more of its next-generation satellites into space, with two Pelicans and 36 SuperDoves joining orbit. Now with five in orbit, these Pelican satellites are particularly exciting in my opinion, as they are equipped with Nvidia's Jetson AI platform.
Since Planet Labs can utilize this AI to scan for the most valuable insights and only send what is immediately relevant, the company can save immense amounts of time and money.
But its next-gen ambitions don't end there.
Planet Labs also announced a partnership with Alphabet's Google to deploy prototype satellites in 2027, equipped with the latter's Tensor Processing Units. While the feasibility of data centers in space is a hotly debated topic, it nevertheless highlights Planet Labs' growing importance after being selected by Google as a partner.
Planet Labs appears to be a promising growth stock, but at 20 times sales, interested investors should consider buying in small batches over time.
Should you invest $1,000 in Planet Labs PBC right now?
Before you buy stock in Planet Labs PBC, 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 Planet Labs PBC 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 $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Josh Kohn-Lindquist has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet 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.

Why Planet Labs Stock Is Skyrocketing This Week

An Anthropic IPO Could Be Here Sooner Than We Thought!

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in W.W. Grainger Inc. (Symbol: GWW), where a total volume of 2,124 contracts has been traded thus far today, a contract volume which is representative of approximately 212,400 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 78.8% of GWW's average daily trading volume over the past month, of 269,480 shares. Particularly high volume was seen for the $1000 strike call option expiring April 17, 2026, with 881 contracts trading so far today, representing approximately 88,100 underlying shares of GWW. Below is a chart showing GWW's trailing twelve month trading history, with the $1000 strike highlighted in orange:
Alphabet Inc (Symbol: GOOGL) options are showing a volume of 357,819 contracts thus far today. That number of contracts represents approximately 35.8 million underlying shares, working out to a sizeable 77.8% of GOOGL's average daily trading volume over the past month, of 46.0 million shares. Especially high volume was seen for the $317.50 strike call option expiring December 12, 2025, with 19,823 contracts trading so far today, representing approximately 2.0 million underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $317.50 strike highlighted in orange:
And Vail Resorts Inc (Symbol: MTN) options are showing a volume of 5,588 contracts thus far today. That number of contracts represents approximately 558,800 underlying shares, working out to a sizeable 71.5% of MTN's average daily trading volume over the past month, of 781,555 shares. Particularly high volume was seen for the $140 strike put option expiring September 18, 2026, with 883 contracts trading so far today, representing approximately 88,300 underlying shares of MTN. Below is a chart showing MTN's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for GWW options, GOOGL options, or MTN options, visit StockOptionsChannel.com.
Also see:
CBSO Videos
BLRX Historical Stock Prices
HABT Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: GWW, GOOGL, MTN

Key Points
Alphabet has been on a winning streak, delivering revenue growth and stock price performance in recent weeks.
A court ruling also represented good news for the company and its shareholders.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), like other tech stocks, traveled through difficult times and better times this year. The stock slipped this spring amid concern about the impact of U.S. import tariffs on corporate earnings. But as President Donald Trump negotiated with other countries, this pressure eased.
The company also faced the challenge of an antitrust suit in the U.S., but a ruling in September averted the worst-case scenario -- and this decision offered Alphabet a significant boost. Since, the stock has gained nearly 50%, and just recently, Alphabet did something it hasn't done in seven years. Is it time to buy this top tech stock? Let's find out.
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First, though, let's catch up on the Alphabet story so far. This is the company behind something you may use and rely on every day: I'm talking about Google Search, the world's most popular search engine. It's steadily held onto about 90% share of the market. Google, through advertising across its platform, fuels Alphabet's revenue growth, but this isn't the only revenue driver.
Alphabet also is the owner of Google Cloud, one of the world's major cloud service providers, and that business is growing in the double digits.
On top of this, Alphabet's investment in artificial intelligence (AI) is helping the company improve its business -- for example, streamlining the advertising experience. Alphabet has developed its own large language model, Gemini, to apply to its own needs and offer to clients through Google Cloud. The cloud provider also offers many AI products and services, from chips to a fully managed service for the development of generative AI, and this has fueled growth in recent quarters.
In the latest quarter, for example, Alphabet said demand for AI infrastructure and generative AI powered a 34% gain in cloud revenue.
The elimination of a big risk
The major weight on all of this was the U.S. antitrust suit -- the risk was a potential breakup of revenue-driver Google. That risk was eliminated when a federal judge decided that Alphabet could maintain its ownership of its Google Chrome browser, and the company now faces lesser penalties.
All of this, along with a reasonable valuation, has helped boost Alphabet shares in recent months -- and help the company do something it hasn't done in seven years. On Nov. 21, Alphabet's market value soared past that of software giant Microsoft for the first time since 2018. Back then, both companies' market capitalizations were about $800 billion -- now, they've surpassed $3 trillion.
Alphabet has maintained its market cap gain, and now at $3.8 trillion, it's the biggest company after Nvidia and Apple.
Now, let's return to our question: Does this make Alphabet a stock to buy? It's key to keep in mind that a high market cap doesn't automatically translate into a buying opportunity. A company may have reached such a level but could now be overvalued or face new headwinds -- or it may not be the right fit for your portfolio.
Why a high market cap may be positive
Of course, recent gains in market cap might be positive -- they could be the result of good news that prompted investors to pile into the stock. And maintaining a high market cap over time shows sustained demand for the shares.
But, before investing, it's most important to consider a company's earnings track record, financial health, and future prospects -- and also take a look at valuation. In the case of Alphabet, there's reason to be optimistic about all of these points. The company has delivered growth in revenue and profit over time, the AI opportunity is in its early days so could spark significant growth in the quarters to come, and today, Alphabet still is reasonably priced -- it trades for 30x forward earnings estimates, which is lower than many of its AI peers.
All of this makes this stock that's roared past Microsoft a fantastic buy right now.
Should you invest $1,000 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 $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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 Just Did Something It Hasn't Done in 7 Years. Time to Buy?

From Apollo to SpaceX: The Dawn of a Secular Space Boom
The last human moon landing occurred more than 50 years ago when NASA’s Apollo 17 mission touched down on the lunar surface, and U.S. astronauts Eugene Cernan and Harrison Schmitt collected samples and conducted experiments. Why has it been so long since? The answer depends on who you ask. Perhaps the reason was a lack of interest after the space race, or maybe it was NASA budgetary issues due to an expanding U.S. fiscal deficit.
Despite these challenges, a scrappy 2002 start-up called Space Exploration Technologies (SpaceX) would change the course of history. Out of necessity, Elon Musk and his team worked backward from a first-principles framework to drastically reduce costs. Additionally, through years of hard work, the SpaceX team achieved the holy grail of rocketry – reusability. Reusability is a game-changer for space travel because it allows for more frequent travel and makes space travel far more affordable and efficient.
Why the Space Industry is Entering a Secular Bull Market
In the past, space endeavors required only two things: a large enough budget and enough interest. However, for private space companies to thrive, capitalism and profits are a non-negotiable.
Earlier this month, SpaceX Founder and CEO Elon Musk confirmed rumors that SpaceX will go public next year and seek a $1.5 trillion valuation. If SpaceX is to garner a $1.5 trillion valuation, it would make the IPO the largest in history, and it would act as a proof of concept for private space companies and would likely spur investment across the industry.
Unpacking the Space Economy
Below are three emerging segments of the space economy for investors to monitor:
· Data Centers: The recent spending spree from big tech juggernauts on AI data centers is unprecedented. For these deep-pocketed companies, the roadblock is not money, but instead a lack of energy. From this perspective, space has notable advantages over Earth. In space, satellites can absorb the sun 24 hours a day (and the sun is ~30% more intense). Meanwhile, cooling these space data centers is far less complicated than on Earth. A company would simply need to put a radiator on the dark side of the satellite. Recent comments suggest that Elon Musk, Alphabet (GOOGL), and Amazon (AMZN) are racing to deploy the first data centers in space.
· Broadband Internet: Earth has an unquenchable thirst for more internet and more bandwidth. Space-based internet improves performance and has no dead spots like legacy internet. AST Space Mobile (ASTS), Globalstar (GSAT), EchoStar (SATS), and Viasat (VSAT) are four leaders to watch in this space vertical.
· Earth-Imaging Satellite: Low-orbit satellite providers such as Planet Labs (PL) provide daily images of the entire planet to industries like agriculture, defense, and environmental mapping. Unlike many space companies, PL is profitable. Last night, PL reported its fourth consecutive profitable quarter. Thursday, PL shares bolted more than 30% in mid-day trading.
Bottom Line
After decades of stagnation, the space industry is finally entering a true secular bull market – driven by innovation, profitability potential, and commercial demand. SpaceX’s rapid progress and potential record-setting IPO will serve as the spark that accelerates investment across the sector.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

From Apollo to SpaceX: The Dawn of a Secular Space Boom

Key Points
Nvidia's success throughout the artificial intelligence (AI) revolution rests almost entirely on its chip dominance.
Alphabet's custom tensor processing units (TPUs) are gaining momentum from AI hyperscalers.
Some investors worry that Nvidia could be dethroned by Alphabet in the chip industry.
For the last three years, Nvidia (NASDAQ: NVDA) has been the most dominant company in the artificial intelligence (AI) landscape. The company's graphics processing units (GPUs) are the backbone on which generative AI is developed.
Hyperscalers including OpenAI, Oracle, Meta Platforms, and cloud platforms such as Microsoft Azure and Amazon Web Services (AWS) have collectively spent hundreds of billions of dollars clustering Nvidia GPUs inside of data centers to build their AI infrastructure.
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While Advanced Micro Devices is largely perceived as Nvidia's chief rival in the AI chip market, a new threat is emerging: Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The internet giant is making waves in the semiconductor industry thanks to rising interest in its custom hardware, known as tensor processing units (TPUs).
Let's take a look at what Alphabet's entrance in the chip market means for Nvidia as investments in AI infrastructure continue to unfold. Should Nvidia investors be worried? Read on to find out.
What is the difference between a GPU and a TPU?
Nvidia's GPUs are versatile pieces of hardware. These chips are designed to work in clusters in parallel with the company's CUDA software architecture. Taken together, Nvidia's ecosystem can be used to train large language models (LLMs) or help build more robust applications across AI robotics, autonomous driving, and quantum computing.
TPUs, by contrast, are much more specialized. Rather than being a purpose-built piece of hardware, Alphabet's TPUs should be classified as a custom application-specific integrated circuit (ASIC). This makes TPUs useful in extremely bespoke workloads such as deep learning.
Alphabet's TPUs are seeing strong demand, but there's a catch
Throughout the AI revolution, one of Alphabet's biggest winners has been its cloud division: Google Cloud platform. In recent months, Google Cloud has won notable deals with OpenAI as well as a $10 billion contract with Meta Platforms.
What investors might not fully comprehend is that the introduction of hardware now makes TPUs an interesting selling point within Google's broader cloud ecosystem.
Notably, Apple used TPUs to train its Apple Intelligence models. Meanwhile, Anthropic announced plans to expand its usage of Google Cloud in a deal featuring up to 1 million TPUs. Lastly, rumors are swirling that Meta is considering complementing its existing reliance on Google Cloud by deploying its own TPU clusters.
On the surface, accelerating TPU demand from big tech might sound alarming for Nvidia investors. However, there are some finer details that smart investors shouldn't overlook.
While Anthropic's relationship with Google Cloud is significant, the company also has strong ties with Nvidia. Just weeks ago, Anthropic agreed to purchase $30 billion of compute capacity from Microsoft Azure, which runs heavily on Nvidia's GPUs.
On top of that, OpenAI recently struck a $38 billion deal with AWS to access Nvidia's new GB200 and GB300 chips.
Furthermore, while Nvidia does not reveal the specifics around its customer concentration, many analysts on Wall Street suspect that the hyperscalers -- including Alphabet -- are among its largest chip buyers.
These are important details to understand. While TPUs represent potentially transformative dynamics in the AI chip market, many of their users -- including Google itself -- actually complement this custom hardware with Nvidia's general purpose GPUs. Against this backdrop, TPUs don't appear to be replacing GPUs at all.
AI chips is not a winner-take-all market
Management consulting firm McKinsey & Company is forecasting AI infrastructure to be a $7 trillion market by 2030, with roughly $5 billion of this spend allocated toward AI workloads.
Given the hyperscalers are accelerating their capital expenditures (capex), I feel confident that demand for Nvidia's GPUs and accompanying data center services will remain robust for the foreseeable future.
It's possible -- even likely -- that rival accelerators from AMD in combination with custom ASICs such as TPUs will eventually erode Nvidia's pricing power in the chip market down the road.
Nevertheless, the introduction of TPUs is not a checkmate move by Google. If anything, complementing existing Nvidia infrastructure with custom chip designs reinforces how large of an opportunity AI infrastructure is becoming. In other words, AI chips are not a winner-take-all market.
For these reasons, I don't think Nvidia investors need to panic. The company still remains the king of the chip realm and appears well positioned to thrive in the AI infrastructure era.
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Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

Did Alphabet Just Say "Checkmate" to Nvidia?

Oracle's ORCL second-quarter fiscal 2026 results presented a mixed picture for investors, with shares declining 11% pre-market despite robust cloud infrastructure growth and record-breaking contracted backlog. The database and cloud infrastructure provider reported total revenues of $16.1 billion for the quarter ending Nov. 30, 2025, representing growth of 14% in U.S. dollars and 13% in constant currency (cc). The figure missed the Zacks Consensus Estimate for revenues by 0.55%
While cloud revenues accelerated significantly, software revenue weakness and aggressive capital expenditure plans raised concerns about near-term profitability, suggesting current shareholders should maintain positions while awaiting improved entry points following execution progress.
The company's cloud business demonstrated remarkable momentum, with total cloud revenues reaching $8 billion, up 34% in U.S. dollars and 33% in cc. Cloud infrastructure revenues surged 66% in cc to $4.1 billion, with GPU-related cloud revenues growing 177%. Cloud applications revenues reached $3.9 billion, up 11%. Cloud revenues now account for half of Oracle's total revenues, marking a fundamental transformation in the company's business model. Software revenues declined 3% in U.S. dollars and 5% in cc to $5.9 billion, reflecting ongoing challenges in legacy product categories.
Oracle's remaining performance obligations reached $523 billion, up 438% year over year and $68 billion sequentially. These increases were driven by new commitments from Meta, NVIDIA, and other customers. Importantly, RPO, expected to be recognized within 12 months, grew 40% year over year, compared with 25% last quarter, indicating accelerated revenue conversion. The company expects $4 billion of additional revenues in fiscal 2027 based on the added backlog that can be monetized quickly starting next year.
Capital Expenditure Acceleration Strains Cash Flow
The quarter's most concerning metric was free cash flow, which registered a negative $10 billion as capital expenditures reached $12 billion. Operating cash flow totaled $2.1 billion. The company increased its full-year fiscal 2026 capital expenditure guidance by $15 billion to approximately $50 billion, up from the $35 billion forecast following first-quarter results. Management emphasized that the vast majority of CapEx investments are for revenue-generating equipment going into data centers, not for land, buildings, or power, which are covered via leases. Oracle does not pay for these leases until completed data centers and accompanying utilities are delivered.
Non-GAAP earnings per share reached $2.26, up 54% in U.S. dollars and 51% in cc, while GAAP earnings per share totaled $2.10, up 91% in U.S. dollars and 86% in cc. Both metrics benefited from a $2.7 billion pre-tax gain from the sale of Oracle's interest in Ampere.
The Zacks Consensus Estimate for ORCL's fiscal 2026 earnings is pegged at $6.81 per share, marking an upward revision of 1 cent over the past 30 days. The earnings figure suggests 12.94% growth over the figure reported in fiscal 2025.
Oracle Corporation Price and Consensus
For the fiscal third quarter, Oracle guided total cloud revenue growth of 37% to 41% in cc and 40% to 44% in U.S. dollars. Total revenues are expected to grow 16% to 18% in cc and 19% to 21% in U.S. dollars. Non-GAAP earnings per share guidance ranges from $1.70 to $1.74 in U.S. dollars. Management maintained its full-year fiscal 2026 revenue expectation of $67 billion.
Oracle's strategic initiatives center on its AI data platform and multicloud database partnerships. Chairman Ellison emphasized that Oracle databases contain most of the world's high-value private data, positioning the company uniquely for AI reasoning applications on enterprise data while maintaining security. The company's multicloud database business grew 817% in the quarter. Oracle is the only applications company selling complete application suites, combining back-office, front-office, and industry-specific solutions with embedded AI capabilities.
Valuation, Competitive Landscape, and Investment Recommendation
Shares of Oracle have returned 26.4% in the past six-month period compared with the Zacks Computer and Technology sector’s appreciation of 27.3% and the Zacks Computer - Software industry’s growth of 1.4%.
ORCL’s 6-Month Price Performance
Image Source: Zacks Investment Research
The cloud infrastructure market remains intensely competitive, with dominant players commanding substantial market positions. Amazon AMZN-owned Amazon Web Services maintains approximately 30% market share with comprehensive service breadth, while Microsoft MSFT Azure leverages enterprise relationships and OpenAI partnerships for differentiated AI capabilities. Alphabet GOOGL-owned Google Cloud has achieved 13% market share with strong momentum in data analytics and machine learning services. Oracle competes through its multicloud database offerings embedded in Amazon, Google, and Microsoft clouds, with 45 live multicloud regions and 27 more planned.
From a valuation standpoint, ORCL stock is currently trading at a premium with a forward 12-month Price/Sales ratio of 8.42x, which is higher than the industry average of 7.61x. Oracle carries a Value Score of D.
ORCL’s P/S Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
Conclusion
Given elevated capital expenditures pressuring near-term cash flows, competition from Microsoft, Amazon, and Google in cloud infrastructure, and premium valuation metrics, current investors should hold positions while prospective buyers await a more attractive entry point following improved operational execution and cash flow generation. ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
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	S/L 5%RUB 304.20	S/L 10%RUB 288.19	S/L 15%RUB 272.18
Day	18.01%	0.01%	0.00%
Week	54.89%	6.97%	0.20%
Month	76.99%	37.62%	13.07%

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